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David Nicol became the CEO of Brewin Dolphin Holdings PLC (LON:BRW) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Brewin Dolphin Holdings
How Does David Nicol's Compensation Compare With Similar Sized Companies?
Our data indicates that Brewin Dolphin Holdings PLC is worth UK£901m, and total annual CEO compensation is UK£1.2m. (This is based on the year to September 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£425k. When we examined a selection of companies with market caps ranging from UK£317m to UK£1.3b, we found the median CEO total compensation was UK£895k.
As you can see, David Nicol is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Brewin Dolphin Holdings PLC is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Brewin Dolphin Holdings has changed over time.
Is Brewin Dolphin Holdings PLC Growing?
On average over the last three years, Brewin Dolphin Holdings PLC has grown earnings per share (EPS) by 12% each year (using a line of best fit). It achieved revenue growth of 3.4% over the last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Brewin Dolphin Holdings PLC Been A Good Investment?
I think that the total shareholder return of 40%, over three years, would leave most Brewin Dolphin Holdings PLC shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared the total CEO remuneration paid by Brewin Dolphin Holdings PLC, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.