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Our Take On James Fisher and Sons plc’s (LON:FSJ) CEO Salary

Nick Henry became the CEO of James Fisher and Sons plc (LON:FSJ) in 2004. 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. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for James Fisher and Sons

How Does Nick Henry’s Compensation Compare With Similar Sized Companies?

According to our data, James Fisher and Sons plc has a market capitalization of UK£868m, and pays its CEO total annual compensation worth UK£1.0m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at UK£447k. We looked at a group of companies with market capitalizations from UK£318m to UK£1.3b, and the median CEO compensation was UK£1.0m.

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So Nick Henry is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at James Fisher and Sons has changed from year to year.

LSE:FSJ CEO Compensation December 17th 18
LSE:FSJ CEO Compensation December 17th 18

Is James Fisher and Sons plc Growing?

James Fisher and Sons plc has increased its earnings per share (EPS) by an average of 2.0% a year, over the last three years In the last year, its revenue is up 9.0%.

I would argue that the improvement in revenue isn’t particularly impressive, but the modest improvement in EPS is good. Considering these factors I’d say performance has been pretty decent, though not amazing.

It could be important to check this free visual depiction of what analysts expect for the future.

Has James Fisher and Sons plc Been A Good Investment?

I think that the total shareholder return of 67%, over three years, would leave most James Fisher and Sons plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Remuneration for Nick Henry is close enough to the median pay for a CEO of a similar sized company .

While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling James Fisher and Sons (free visualization of insider trades).

Or you might prefer examine intently this intuitive graph showing past earnings 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.