How Should Investors Feel About Benchmark Holdings plc's (LON:BMK) CEO Pay?

In this article:

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

In 2000 Malcolm David Pye was appointed CEO of Benchmark Holdings plc (LON:BMK). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Benchmark Holdings

How Does Malcolm David Pye's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Benchmark Holdings plc has a market cap of UK£254m, and is paying total annual CEO compensation of UK£554k. (This figure is for the year to September 2018). While we always look at total compensation first, we note that the salary component is less, at UK£315k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£152m to UK£608m. The median total CEO compensation was UK£627k.

That means Malcolm David Pye receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Benchmark Holdings has changed over time.

AIM:BMK CEO Compensation, May 5th 2019
AIM:BMK CEO Compensation, May 5th 2019

Is Benchmark Holdings plc Growing?

Benchmark Holdings plc has increased its earnings per share (EPS) by an average of 79% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 8.1%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.

Has Benchmark Holdings plc Been A Good Investment?

Given the total loss of 19% over three years, many shareholders in Benchmark Holdings plc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Malcolm David Pye is paid around what is normal the leaders of comparable size companies.

We'd say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Shareholders may want to check for free if Benchmark Holdings insiders are buying or selling shares.

Important note: Benchmark Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.

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. Thank you for reading.

Advertisement