Stephen Marks has been the CEO of French Connection Group PLC (LON:FCCN) since 1969. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Stephen Marks's Compensation Compare With Similar Sized Companies?
According to our data, French Connection Group PLC has a market capitalization of UK£32m, and pays its CEO total annual compensation worth UK£395k. (This figure is for the year to January 2019). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£371k. We examined a group of similar sized companies, with market capitalizations of below UK£160m. The median CEO total compensation in that group is UK£255k.
As you can see, Stephen Marks is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean French Connection Group PLC is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at French Connection Group, below.
Is French Connection Group PLC Growing?
French Connection Group PLC has reduced its earnings per share by an average of 10.0% a year, over the last three years (measured with a line of best fit). Its revenue is down -4.0% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has French Connection Group PLC Been A Good Investment?
Since shareholders would have lost about 11% over three years, some French Connection Group PLC shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by French Connection Group PLC, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling French Connection Group (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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