The CEO of Bloomsbury Publishing plc (LON:BMY) is John Newton, and this article examines 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 Bloomsbury Publishing
Comparing Bloomsbury Publishing plc's CEO Compensation With the industry
Our data indicates that Bloomsbury Publishing plc has a market capitalization of UK£163m, and total annual CEO compensation was reported as UK£1.3m for the year to February 2020. Notably, that's an increase of 31% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£455k.
On comparing similar companies from the same industry with market caps ranging from UK£77m to UK£309m, we found that the median CEO total compensation was UK£832k. This suggests that John Newton is paid more than the median for the industry. Moreover, John Newton also holds UK£2.3m worth of Bloomsbury Publishing stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | UK£455k | UK£444k | 36% |
| Other | UK£795k | UK£507k | 64% |
| Total Compensation | UK£1.3m | UK£951k | 100% |
Speaking on an industry level, nearly 40% of total compensation represents salary, while the remainder of 60% is other remuneration. There isn't a significant difference between Bloomsbury Publishing and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Bloomsbury Publishing plc's Growth
Bloomsbury Publishing plc's earnings per share (EPS) grew 13% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Bloomsbury Publishing plc Been A Good Investment?
Most shareholders would probably be pleased with Bloomsbury Publishing plc for providing a total return of 40% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.