Yahoo Finance Here's What We Think About Microsaic Systems' (LON:MSYS) CEO Pay
Glenn Tracey has been the CEO of Microsaic Systems plc (LON:MSYS) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Microsaic Systems.
See our latest analysis for Microsaic Systems
Comparing Microsaic Systems plc's CEO Compensation With the industry
Our data indicates that Microsaic Systems plc has a market capitalization of UK£2.4m, and total annual CEO compensation was reported as UK£154k for the year to December 2019. This means that the compensation hasn't changed much from last year. Notably, the salary which is UK£133.8k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under UK£154m, the reported median total CEO compensation was UK£225k. This suggests that Glenn Tracey is paid below the industry median.
Component | 2019 | 2018 | Proportion (2019) |
Salary | UK£134k | UK£130k | 87% |
Other | UK£21k | UK£28k | 13% |
Total Compensation | UK£154k | UK£158k | 100% |
On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. Microsaic Systems is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Microsaic Systems plc's Growth Numbers
Microsaic Systems plc has seen its earnings per share (EPS) increase by 43% a year over the past three years. It saw its revenue drop 6.0% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 Microsaic Systems plc Been A Good Investment?
With a three year total loss of 52% for the shareholders, Microsaic Systems plc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As we noted earlier, Microsaic Systems pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However we must not forget that the EPS growth has been very strong over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. But shareholders will likely want to hold off on any raise for Glenn until investor returns are positive.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 3 which are potentially serious) in Microsaic Systems we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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.
