How Much Is Jet2 plc (LON:JET2) Paying Its CEO?
The CEO of Jet2 plc (LON: JET2) is Philip Meeson. This article examines executive compensation against the background of the company's overall performance. This analysis also assesses whether Jet2 is adequately paying its CEO, taking into account recent earnings growth and total shareholder return.
Check out our latest analysis for Jet2
How does Philip Meeson's total compensation compare to other companies in the industry?
According to our data, Jet2 plc has a market capitalization of £ 1.4 billion and paid its CEO total annual compensation of £ 462,000 through March 2020. This corresponds to a slight decrease of 5.1% compared to the previous year. We find that the salary component, which is £ 450,0,000 in the UK, is the largest part of the total compensation received by the CEO.
When comparing similar companies in the same industry with market caps between £ 774m and £ 2.5bn, we found that the average total CEO compensation was £ 2.4m. Accordingly, Jet2 pays its CEO below the industry median. In addition, Philip Meeson owns £ 380m worth of shares in the company in the UK, suggesting they have a lot of skin in the game.
UK £ 450k
UK £ 476k
UK £ 12k
UK £ 11k
UK £ 462k
UK £ 487k
At the branch level, around 75% of total compensation corresponds to salary and 25% to other compensation. Jet2 has taken a largely traditional route, paying Philip Meeson a high salary, taking precedence over non-salary benefits. When salary dominates total compensation, it suggests that CEO compensation is less based on the variable component normally associated with performance.
The growth of Jet2 plc
At Jet2 plc, earnings per share (EPS) have increased 13% per year over the past three years. Last year sales increased by 21%.
This shows that the company has been improving lately and is good news for shareholders. It's really positive to see that kind of revenue growth in a single year. That suggests a healthy and growing business. Historical performance can sometimes be a good indicator of what's coming next. However, if you want to look into the future of the company, this free analyst forecast visualization might interest you.
Was Jet2 plc a good investment?
We believe that a 41% total shareholder return over three years would make most Jet2 plc shareholders smile. So you may not be affected at all if the CEO gets paid more than normal for companies of the same size.
Philip receives almost all of the compensation through a salary. As mentioned earlier, Philip is paid less than is usual for CEOs of similar sized companies belonging to the same industry. Given the robust EPS growth, we believe Philip will be paid modestly. And since most shareholders are likely very happy with recent shareholder returns, they might even think Philip deserves a raise!
CEO compensation can have a massive impact on performance, but it is only one element. Because of this, we've done some digging and identified 4 warning signs for Jet2 to be aware of before investing.
Of course, looking at a different set of stocks could make a fantastic investment. So take a look at this free list of interesting companies.
This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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