Yahoo Finance Is Finsbury Food Group Plc's (LON:FIF) CEO Overpaid Relative To Its Peers?
John Duffy became the CEO of Finsbury Food Group Plc (LON:FIF) in 2009. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Finsbury Food Group
How Does John Duffy's Compensation Compare With Similar Sized Companies?
Our data indicates that Finsbury Food Group Plc is worth UK£85m, and total annual CEO compensation is UK£1.2m. (This number is for the twelve months until June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£403k. 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£252k.
Thus we can conclude that John Duffy receives more in total compensation than the median of a group of companies in the same market, and of similar size to Finsbury Food Group Plc. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Finsbury Food Group, below.
Is Finsbury Food Group Plc Growing?
Over the last three years Finsbury Food Group Plc has shrunk its earnings per share by an average of 26% per year (measured with a line of best fit). Its revenue is down -5.5% 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. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Finsbury Food Group Plc Been A Good Investment?
Since shareholders would have lost about 42% over three years, some Finsbury Food Group Plc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount Finsbury Food Group Plc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Finsbury Food Group (free visualization of insider trades).
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.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
