Is Billington Holdings Plc's (LON:BILN) CEO Pay Fair?

In this article:

Mark Smith has been the CEO of Billington Holdings Plc (LON:BILN) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Billington Holdings

How Does Mark Smith's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Billington Holdings Plc has a market cap of UK£46m, and reported total annual CEO compensation of UK£266k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£180k. We took a group of companies with market capitalizations below UK£155m, and calculated the median CEO total compensation to be UK£252k.

So Mark Smith is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Billington Holdings, below.

AIM:BILN CEO Compensation, February 28th 2020
AIM:BILN CEO Compensation, February 28th 2020

Is Billington Holdings Plc Growing?

Billington Holdings Plc has increased its earnings per share (EPS) by an average of 16% a year, over the last three years (using a line of best fit). Its revenue is up 12% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.

Has Billington Holdings Plc Been A Good Investment?

I think that the total shareholder return of 79%, over three years, would leave most Billington Holdings Plc shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Mark Smith is paid around what is normal the leaders of comparable size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Billington Holdings shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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