Pearson’s Group Chief Executive Compensation Surged By 70% For 2018

Pearson PLC

Pearson PLC (PSON) is a British learning company, headquartered in London, United Kingdom. The group serves private and public institutions, governments, and individual learners in numerous countries to provide them with education products and services like test development, processing, scoring services and a wide range of other education services. The group owns and operates schools as well. The company employs more than 40,000 personnel for its operations across 60 countries. The outstanding market capitalisation of the company stood at £6.53 bn, and a dividend yield of the company stood at 2.23%.  [optin-monster-shortcode id=”wxhmli4jjedneglg1trq”]

The company’s principal products are: Educational materials, Test development, processing, and scoring services, Teacher development,  Educational software Curriculum textbooks and other learning materials, Mathematics solutions,  Literacy solutions,  Digital instructional solutions,  Educational assessment services,  Learning assessments services,  Academic and vocational qualifications,  Digital products,  Workforce education,  Online learning,  Digital learning,  Educational institutions,  Vocational teaching,  Online program management and Custom print solutions.

The Chief Executive of Person Group secured a pay hike of 70 per cent for 2018 after meeting the requirements for an award from Pearson’s long-term performance scheme as a Chief Executive for the first time.

John Fallon’s total pay rose to £3.1 million from £1.8 million in 2017, a surge in Fallon’s salary reflects a bonus of £1.5 million from Pearson’s long-term performance plan.

John Fallon took charge as a CEO of the Pearson Group in 2013. Since then his pay had never risen above £1.9 million, considerably below the salary of his predecessor, Marjorie Scardino, who received £5.3 mn from the group in 2012 and £8.3 mn a year before.

Chief executive of governance consultancy Minerva Analytics, Sarah Wilson, said that the remuneration of Chief Executive at the UK based publishing group Pearson does not exhibit good practice. She also added that it is a very prolific pension for someone who is already very generously rewarded.

The chief of Pearson was widely attacked over a double-digit rise in his pay, while the company is witnessing losses. Shareholders of Pearson Group voted to discard a pay hike in 2017. This was monumental mutiny over executive pay rise in Britain.

Pearson has an established position in the global education market. The company is the worldwide leader in education and education technology market. Pearson is a leading provider of educational materials and learning technologies. In North American school market, the company offer early learning solutions. It is also the largest provider of educational assessment services in the US. It marks large-scale school examinations for the US federal government and more than 25 American states, scoring billions of multiple-choice tests and more than 111 million essays every year.

Although the company faces intense competition across all its business segments, the Pearson Education business competes with other publishers and creators of educational materials and services, including large international companies, Houghton Mifflin Harcourt, alongside smaller niche players that specialize in a particular academic discipline or focus on learning technology.

Some of the company’s competitors include Cengage Learning, McGraw Hill Financial, Houghton Mifflin Harcourt Company, and Prometric Inc.