In 2014 Albert Manifold was appointed CEO of CRH plc (ISE:CRG). First, this article will compare CEO compensation with compensation at other large companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for CRH
How Does Albert Manifold’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that CRH plc has a market cap of €20b, and is paying total annual CEO compensation of €8.7m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €1.4m. We took a group of companies with market capitalizations over €7.0b, and calculated the median CEO compensation to be €3.6m. There aren’t very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
It would therefore appear that CRH plc pays Albert Manifold more than the median CEO remuneration at large companies, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at CRH, below.
Is CRH plc Growing?
Over the last three years CRH plc has grown its earnings per share (EPS) by an average of 37% per year. It achieved revenue growth of 5.7% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. 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. .
Has CRH plc Been A Good Investment?
CRH plc has not done too badly by shareholders, with a total return of 4.7%, over three years. 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.
In Summary…
We examined the amount CRH plc pays its CEO, and compared it to the amount paid by other large companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven’t been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. Whatever your view on compensation, you might want to check if insiders are buying or selling CRH shares (free trial).