London & Associated Properties PLC (LON:LAS) has not performed well recently and CEO John Heller will probably need to up their game. At the upcoming AGM on 15 June 2021, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for London & Associated Properties

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

Our data indicates that London & Associated Properties PLC has a market capitalization of UK£9.6m, and total annual CEO compensation was reported as UK£418k for the year to December 2020. We note that's a decrease of 35% compared to last year. Notably, the salary which is UK£348.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under UK£141m, the reported median total CEO compensation was UK£211k. Accordingly, our analysis reveals that London & Associated Properties PLC pays John Heller north of the industry median. What's more, John Heller holds UK£210k worth of shares in the company in their own name.

Talking in terms of the industry, salary represented approximately 52% of total compensation out of all the companies we analyzed, while other remuneration made up 48% of the pie. It's interesting to note that London & Associated Properties pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at London & Associated Properties PLC's Growth Numbers

London & Associated Properties PLC has reduced its earnings per share by 98% a year over the last three years. Its revenue is down 45% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has London & Associated Properties PLC Been A Good Investment?

The return of -60% over three years would not have pleased London & Associated Properties PLC shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for London & Associated Properties you should be aware of, and 1 of them is significant.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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