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Despite Great Portland Estates Plc's (LON:GPOR) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 08 July 2021. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.
Check out our latest analysis for Great Portland Estates
How Does Total Compensation For Toby Courtauld Compare With Other Companies In The Industry?
Our data indicates that Great Portland Estates Plc has a market capitalization of UK£1.8b, and total annual CEO compensation was reported as UK£1.2m for the year to March 2021. Notably, that's a decrease of 24% over the year before. Notably, the salary which is UK£612.0k, represents a considerable chunk of the total compensation being paid.
On comparing similar companies from the same industry with market caps ranging from UK£1.4b to UK£4.6b, we found that the median CEO total compensation was UK£1.1m. So it looks like Great Portland Estates compensates Toby Courtauld in line with the median for the industry. Furthermore, Toby Courtauld directly owns UK£9.9m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2021 | 2020 | Proportion (2021) |
| Salary | UK£612k | UK£603k | 50% |
| Other | UK£601k | UK£996k | 50% |
| Total Compensation | UK£1.2m | UK£1.6m | 100% |
On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. It's interesting to note that Great Portland Estates pays out a greater portion of remuneration through salary, compared to the 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 Great Portland Estates Plc's Growth Numbers
Great Portland Estates Plc has reduced its earnings per share by 103% a year over the last three years. Its revenue is down 16% over the previous year.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..