In This Article:
Per Prebensen has been the CEO of Close Brothers Group plc (LON:CBG) since 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Close Brothers Group
How Does Per Prebensen's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Close Brothers Group plc has a market cap of UK£2.0b, and reported total annual CEO compensation of UK£2.5m for the year to July 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£550k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from UK£1.6b to UK£5.2b, and the median CEO total compensation was UK£1.8m.
As you can see, Per Prebensen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Close Brothers Group plc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Close Brothers Group has changed over time.
Is Close Brothers Group plc Growing?
Over the last three years Close Brothers Group plc has grown its earnings per share (EPS) by an average of 2.1% per year (using a line of best fit). It achieved revenue growth of 2.2% over the last year.
I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Close Brothers Group plc Been A Good Investment?
Close Brothers Group plc has generated a total shareholder return of 10% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We compared total CEO remuneration at Close Brothers Group plc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.