In This Article:
CEO Greg Fitzgerald has done a decent job of delivering relatively good performance at Vistry Group PLC (LON:VTY) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 17 May 2021. We present our case of why we think CEO compensation looks fair.
Check out our latest analysis for Vistry Group
Comparing Vistry Group PLC's CEO Compensation With the industry
At the time of writing, our data shows that Vistry Group PLC has a market capitalization of UK£2.9b, and reported total annual CEO compensation of UK£1.3m for the year to December 2020. We note that's a decrease of 38% compared to last year. We note that the salary of UK£696.0k makes up a sizeable portion of the total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations ranging from UK£1.4b to UK£4.5b, the reported median CEO total compensation was UK£1.3m. From this we gather that Greg Fitzgerald is paid around the median for CEOs in the industry. Moreover, Greg Fitzgerald also holds UK£9.1m worth of Vistry Group 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£696k | UK£680k | 52% |
| Other | UK£646k | UK£1.5m | 48% |
| Total Compensation | UK£1.3m | UK£2.2m | 100% |
On an industry level, around 63% of total compensation represents salary and 37% is other remuneration. Vistry Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Vistry Group PLC's Growth Numbers
Over the last three years, Vistry Group PLC has shrunk its earnings per share by 18% per year. In the last year, its revenue is up 60%.
The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Vistry Group PLC Been A Good Investment?
Vistry Group PLC has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.