What Did Daily Mail and General Trust plc’s (LON:DMGT) CEO Take Home Last Year?
Paul Zwillenberg has been the CEO of Daily Mail and General Trust plc (LON:DMGT) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Daily Mail and General Trust
How Does Paul Zwillenberg’s Compensation Compare With Similar Sized Companies?
According to our data, Daily Mail and General Trust plc has a market capitalization of UK£1.6b, and paid its CEO total annual compensation worth UK£3.7m over the year to September 2019. We think total compensation is more important but we note that the CEO salary is lower, at UK£769k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£811m to UK£2.6b. The median total CEO compensation was UK£1.4m.
Now let’s take a look at the pay mix on an industry and company level to gain a better understanding of where Daily Mail and General Trust stands. On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. Non-salary compensation represents a greater slice of the remuneration pie for Daily Mail and General Trust, in sharp contrast to the overall sector.
As you can see, Paul Zwillenberg is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Daily Mail and General Trust plc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. The graphic below shows how CEO compensation at Daily Mail and General Trust has changed from year to year.
LSE:DMGT CEO Compensation April 24th 2020
Is Daily Mail and General Trust plc Growing?
Over the last three years Daily Mail and General Trust plc has seen earnings per share (EPS) move in a positive direction by an average of 65% per year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.
Has Daily Mail and General Trust plc Been A Good Investment?
With a total shareholder return of 13% over three years, Daily Mail and General Trust plc shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
We examined the amount Daily Mail and General Trust plc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. On another note, Daily Mail and General Trust has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
