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Performance at B.P. Marsh & Partners PLC (LON:BPM) has been rather uninspiring recently and shareholders may be wondering how CEO Alice Hannah Foulk plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 14 July 2021. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.
View our latest analysis for B.P. Marsh & Partners
Comparing B.P. Marsh & Partners PLC's CEO Compensation With the industry
Our data indicates that B.P. Marsh & Partners PLC has a market capitalization of UK£122m, and total annual CEO compensation was reported as UK£262k for the year to January 2021. We note that's an increase of 9.0% above last year. In particular, the salary of UK£170.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the same industry with market capitalizations ranging between UK£73m and UK£290m had a median total CEO compensation of UK£465k. In other words, B.P. Marsh & Partners pays its CEO lower than the industry median. Furthermore, Alice Hannah Foulk directly owns UK£700k worth of shares in the company.
| Component | 2021 | 2020 | Proportion (2021) |
| Salary | UK£170k | UK£150k | 65% |
| Other | UK£92k | UK£90k | 35% |
| Total Compensation | UK£262k | UK£240k | 100% |
On an industry level, around 47% of total compensation represents salary and 53% is other remuneration. B.P. Marsh & Partners is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at B.P. Marsh & Partners PLC's Growth Numbers
Over the last three years, B.P. Marsh & Partners PLC has shrunk its earnings per share by 18% per year. In the last year, its revenue is up 4.3%.
Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has B.P. Marsh & Partners PLC Been A Good Investment?
B.P. Marsh & Partners PLC has generated a total shareholder return of 22% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.