In This Article:
This article will reflect on the compensation paid to Jim Gibson who has served as CEO of Big Yellow Group Plc (LON:BYG) since 1998. This analysis will also assess whether Big Yellow Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Note: The company does not report funds from operations, and as a result, we have used earnings per share in our analysis.
View our latest analysis for Big Yellow Group
Comparing Big Yellow Group Plc's CEO Compensation With the industry
Our data indicates that Big Yellow Group Plc has a market capitalization of UK£1.8b, and total annual CEO compensation was reported as UK£1.1m for the year to March 2020. We note that's a small decrease of 3.9% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£400k.
In comparison with other companies in the industry with market capitalizations ranging from UK£1.5b to UK£4.9b, the reported median CEO total compensation was UK£1.3m. This suggests that Big Yellow Group remunerates its CEO largely in line with the industry average. Moreover, Jim Gibson also holds UK£27m worth of Big Yellow 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£400k | UK£350k | 35% |
| Other | UK£737k | UK£832k | 65% |
| Total Compensation | UK£1.1m | UK£1.2m | 100% |
Speaking on an industry level, nearly 38% of total compensation represents salary, while the remainder of 62% is other remuneration. Our data reveals that Big Yellow Group allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Big Yellow Group Plc's Growth Numbers
Over the last three years, Big Yellow Group Plc has shrunk its earnings per share by 4.2% per year. Its revenue is up 3.2% over the last year.
Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Big Yellow Group Plc Been A Good Investment?
Most shareholders would probably be pleased with Big Yellow Group Plc for providing a total return of 53% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.