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Duncan Sinclair became the CEO of Mountview Estates P.L.C. (LON:MTVW) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Mountview Estates pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Mountview Estates
How Does Total Compensation For Duncan Sinclair Compare With Other Companies In The Industry?
According to our data, Mountview Estates P.L.C. has a market capitalization of UK£421m, and paid its CEO total annual compensation worth UK£1.0m over the year to March 2020. That's a modest increase of 5.3% on the prior year. In particular, the salary of UK£555.0k, makes up a huge portion of the total compensation being paid to the CEO.
On examining similar-sized companies in the industry with market capitalizations between UK£150m and UK£602m, we discovered that the median CEO total compensation of that group was UK£719k. Accordingly, our analysis reveals that Mountview Estates P.L.C. pays Duncan Sinclair north of the industry median. What's more, Duncan Sinclair holds UK£58m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | UK£555k | UK£530k | 54% |
| Other | UK£472k | UK£445k | 46% |
| Total Compensation | UK£1.0m | UK£975k | 100% |
Speaking on an industry level, nearly 54% of total compensation represents salary, while the remainder of 46% is other remuneration. Mountview Estates is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Mountview Estates P.L.C.'s Growth
Over the last three years, Mountview Estates P.L.C. has shrunk its earnings per share by 7.9% per year. In the last year, its revenue changed by just 0.8%.
The decline in EPS is a bit concerning. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet 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 Mountview Estates P.L.C. Been A Good Investment?
With a total shareholder return of 5.1% over three years, Mountview Estates P.L.C. has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.