John Arnold became the CEO of Circle Property Plc (LON:CRC) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Circle Property

How Does Total Compensation For John Arnold Compare With Other Companies In The Industry?

Our data indicates that Circle Property Plc has a market capitalization of UK£50m, and total annual CEO compensation was reported as UK£672k for the year to March 2020. We note that's an increase of 9.8% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£215k.

For comparison, other companies in the industry with market capitalizations below UK£146m, reported a median total CEO compensation of UK£321k. Accordingly, our analysis reveals that Circle Property Plc pays John Arnold north of the industry median. Furthermore, John Arnold directly owns UK£1.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 51% of total compensation represents salary, while the remainder of 49% is other remuneration. It's interesting to note that Circle Property allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Circle Property Plc's Growth

Circle Property Plc has reduced its earnings per share by 46% a year over the last three years. It achieved revenue growth of 34% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Circle Property Plc Been A Good Investment?

With a total shareholder return of 16% over three years, Circle Property Plc shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.