Yahoo Finance Here's What We Think About Tekcapital's (LON:TEK) CEO Pay
The CEO of Tekcapital plc (LON:TEK) is Cliff Gross, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for Tekcapital
Comparing Tekcapital plc's CEO Compensation With the industry
According to our data, Tekcapital plc has a market capitalization of UK£11m, and paid its CEO total annual compensation worth US$209k over the year to November 2019. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at US$187.8k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under UK£150m, the reported median total CEO compensation was US$407k. Accordingly, Tekcapital pays its CEO under the industry median. Moreover, Cliff Gross also holds UK£1.1m worth of Tekcapital stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$188k | US$192k | 90% |
Other | US$21k | US$15k | 10% |
Total Compensation | US$209k | US$207k | 100% |
On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. Tekcapital is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Tekcapital plc's Growth
Tekcapital plc's earnings per share (EPS) grew 45% per year over the last three years. In the last year, its revenue is down 53%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Tekcapital plc Been A Good Investment?
With a three year total loss of 58% for the shareholders, Tekcapital plc would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
As previously discussed, Cliff is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth over three years is certainly impressive. Considering EPS are on the up, we would say Cliff is compensated fairly. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.
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 1 which is significant) in Tekcapital 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.
