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Here's What We Think About Barclays PLC's (LON:BARC) CEO Pay

In 2015 Jes Staley was appointed CEO of Barclays PLC (LON:BARC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Barclays

How Does Jes Staley's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Barclays PLC has a market cap of UK£30b, and reported total annual CEO compensation of UK£3.4m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at UK£2.4m. We looked at a group of companies with market capitalizations over UK£6.1b and the median CEO total compensation was UK£3.4m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

That means Jes Staley receives fairly typical remuneration for the CEO of a large company. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Barclays has changed over time.

LSE:BARC CEO Compensation, January 26th 2020
LSE:BARC CEO Compensation, January 26th 2020

Is Barclays PLC Growing?

Barclays PLC has increased its earnings per share (EPS) by an average of 37% a year, over the last three years (using a line of best fit). Its revenue is down 2.5% over last year.

This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.

Has Barclays PLC Been A Good Investment?

Given the total loss of 18% over three years, many shareholders in Barclays PLC are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Jes Staley is paid around the same as most CEOs of large companies.

We like that the company is growing EPS, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Shareholders may want to check for free if Barclays insiders are buying or selling shares.

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 editorial-team@simplywallst.com. 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.