Yahoo Finance How Does Victrex's (LON:VCT) CEO Salary Compare to Peers?
Jakob Sigurdsson became the CEO of Victrex plc (LON:VCT) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Victrex.
Check out our latest analysis for Victrex
How Does Total Compensation For Jakob Sigurdsson Compare With Other Companies In The Industry?
According to our data, Victrex plc has a market capitalization of UK£2.1b, and paid its CEO total annual compensation worth UK£880k over the year to September 2020. We note that's an increase of 15% above last year. Notably, the salary which is UK£557.5k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations ranging from UK£1.5b to UK£4.7b, the reported median CEO total compensation was UK£890k. So it looks like Victrex compensates Jakob Sigurdsson in line with the median for the industry. What's more, Jakob Sigurdsson holds UK£323k worth of shares in the company in their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£558k | UK£545k | 63% |
Other | UK£323k | UK£219k | 37% |
Total Compensation | UK£880k | UK£764k | 100% |
Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. Although there is a difference in how total compensation is set, Victrex more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Victrex plc's Growth
Victrex plc has reduced its earnings per share by 19% a year over the last three years. Its revenue is down 9.5% over the previous year.
The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Victrex plc Been A Good Investment?
Victrex plc has generated a total shareholder return of 4.1% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
As previously discussed, Jakob is compensated close to the median for companies of its size, and which belong to the same industry. Victrex has had a poor showing when it comes to EPS growth, and it's tough to say that shareholder returns have done much to excite us. This doesn't compare well with CEO compensation, which is largely in line with the industry median. We would stop short of the compensation is inappropriate, but we can't say the executive is underpaid.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Victrex that investors should think about before committing capital to this stock.
Switching gears from Victrex, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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.
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