In This Article:
Nigel Terrington has been the CEO of Paragon Banking Group PLC (LON:PAG) since 1995. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Paragon Banking Group
How Does Nigel Terrington's Compensation Compare With Similar Sized Companies?
According to our data, Paragon Banking Group PLC has a market capitalization of UK£724m, and paid its CEO total annual compensation worth UK£2.9m over the year to September 2019. We think total compensation is more important but we note that the CEO salary is lower, at UK£503k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£322m to UK£1.3b. The median total CEO compensation was UK£1.0m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Paragon Banking Group stands. Talking in terms of the sector, salary represented approximately 37% of total compensation out of all the companies we analysed, while other remuneration made up 63% of the pie. Readers will want to know that Paragon Banking Group pays a modest slice of remuneration through salary, as compared to the wider sector.
Thus we can conclude that Nigel Terrington receives more in total compensation than the median of a group of companies in the same market, and of similar size to Paragon Banking Group PLC. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. You can see, below, how CEO compensation at Paragon Banking Group has changed over time.
Is Paragon Banking Group PLC Growing?
Over the last three years Paragon Banking Group PLC has seen earnings per share (EPS) move in a positive direction by an average of 11% per year (using a line of best fit). In the last year, its revenue is up 2.2%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.