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Is FW Thorpe Plc (LON:TFW) Excessively Paying Its CEO?

In 2010 Mike Allcock was appointed CEO of FW Thorpe Plc (LON:TFW). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 FW Thorpe

How Does Mike Allcock’s Compensation Compare With Similar Sized Companies?

Our data indicates that FW Thorpe Plc is worth UK£311m, and total annual CEO compensation is UK£629k. (This figure is for the year to 2018). That’s a notable increase of 44% on last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£256k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£157m to UK£628m. The median total CEO compensation was UK£678k.

That means Mike Allcock receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at FW Thorpe, below.

AIM:TFW CEO Compensation December 5th 18

Is FW Thorpe Plc Growing?

On average over the last three years, FW Thorpe Plc has grown earnings per share (EPS) by 9.8% each year. Its revenue is up 4.0% over last year.

I’m not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.

Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has FW Thorpe Plc Been A Good Investment?

With a total shareholder return of 16% over three years, FW Thorpe Plc shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

Mike Allcock is paid around what is normal the leaders of comparable size companies.

We think many would like to see better growth. While there is room for improvement, we haven’t seen evidence to suggest the pay is too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at FW Thorpe.

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.