Advertisement
UK markets closed
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • CRUDE OIL

    83.02
    +1.67 (+2.05%)
     
  • GOLD FUTURES

    2,242.80
    +30.10 (+1.36%)
     
  • DOW

    39,784.65
    +24.57 (+0.06%)
     
  • Bitcoin GBP

    56,231.50
    +1,802.68 (+3.31%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • NASDAQ Composite

    16,377.28
    -22.24 (-0.14%)
     
  • UK FTSE All Share

    4,338.05
    +12.12 (+0.28%)
     

How Is Altus Strategies' (LON:ALS) CEO Paid Relative To Peers?

This article will reflect on the compensation paid to Steven Poulton who has served as CEO of Altus Strategies plc (LON:ALS) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Altus Strategies

How Does Total Compensation For Steven Poulton Compare With Other Companies In The Industry?

According to our data, Altus Strategies plc has a market capitalization of UK£40m, and paid its CEO total annual compensation worth UK£184k over the year to December 2019. That's a notable increase of 37% on last year. In particular, the salary of UK£125.0k, makes up a huge portion of the total compensation being paid to the CEO.

ADVERTISEMENT

On comparing similar-sized companies in the industry with market capitalizations below UK£155m, we found that the median total CEO compensation was UK£150k. This suggests that Altus Strategies remunerates its CEO largely in line with the industry average. Furthermore, Steven Poulton directly owns UK£3.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2019

2018

Proportion (2019)

Salary

UK£125k

UK£123k

68%

Other

UK£59k

UK£12k

32%

Total Compensation

UK£184k

UK£135k

100%

On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. There isn't a significant difference between Altus Strategies and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

Altus Strategies plc's Growth

Over the past three years, Altus Strategies plc has seen its earnings per share (EPS) grow by 40% per year. Its revenue is up 173% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Altus Strategies plc Been A Good Investment?

We think that the total shareholder return of 34%, over three years, would leave most Altus Strategies plc shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

As previously discussed, Steven is compensated close to the median for companies of its size, and which belong to the same industry. The company is growing EPS and total shareholder returns have been pleasing. So one could argue that CEO compensation is quite modest, if you consider company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 5 warning signs for Altus Strategies you should be aware of, and 3 of them are significant.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.