In 2013 Siobhan Talbot was appointed CEO of Glanbia plc (ISE:GL9). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Glanbia
How Does Siobhan Talbot’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Glanbia plc has a market cap of €5.5b, and is paying total annual CEO compensation of €2.3m. (This is based on the year to December 2018). We note that’s an increase of 20% above last year. While we always look at total compensation first, we note that the salary component is less, at €860k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €3.6b to €11b. The median total CEO compensation was €1.7m.
As you can see, Siobhan Talbot is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Glanbia plc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Glanbia has changed over time.
Is Glanbia plc Growing?
Glanbia plc has increased its earnings per share (EPS) by an average of 10% a year, over the last three years (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has Glanbia plc Been A Good Investment?
Glanbia plc has not done too badly by shareholders, with a total return of 4.6%, over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
We examined the amount Glanbia plc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven’t been bad. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. Shareholders may want to check for free if Glanbia insiders are buying or selling shares.