In This Article:
David Thomas became the CEO of Barratt Developments PLC (LON:BDEV) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.
See our latest analysis for Barratt Developments
How Does David Thomas’s Compensation Compare With Similar Sized Companies?
Our data indicates that Barratt Developments PLC is worth UK£4.9b, and total annual CEO compensation is UK£2.8m. That’s below the compensation, last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£3.1b to UK£9.4b. The median total CEO compensation was UK£2.6m.
So David Thomas receives a similar amount to the median CEO pay, amongst 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.
The graphic below shows how CEO compensation at Barratt Developments has changed from year to year.
Is Barratt Developments PLC Growing?
Over the last three years Barratt Developments PLC has grown its earnings per share (EPS) by an average of 11% per year. Its revenue is up 4.8% over last year.
This demonstrates that the company has been improving recently. A good result. 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 Barratt Developments PLC Been A Good Investment?
With a total shareholder return of 5.1% over three years, Barratt Developments PLC has done okay by shareholders. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
Remuneration for David Thomas is close enough to the median pay for a CEO of a similar sized company .
The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.