Yahoo Finance What We Learned About NWF Group's (LON:NWF) CEO Compensation
Richard Whiting is the CEO of NWF Group plc (LON:NWF), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether NWF Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for NWF Group
Comparing NWF Group plc's CEO Compensation With the industry
Our data indicates that NWF Group plc has a market capitalization of UK£98m, and total annual CEO compensation was reported as UK£1.0m for the year to May 2020. That's a notable increase of 69% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£297k.
In comparison with other companies in the industry with market capitalizations under UK£147m, the reported median total CEO compensation was UK£284k. Accordingly, our analysis reveals that NWF Group plc pays Richard Whiting north of the industry median. What's more, Richard Whiting holds UK£804k worth of shares in the company in their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£297k | UK£290k | 29% |
Other | UK£726k | UK£315k | 71% |
Total Compensation | UK£1.0m | UK£605k | 100% |
On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. It's interesting to note that NWF Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at NWF Group plc's Growth Numbers
Over the past three years, NWF Group plc has seen its earnings per share (EPS) grow by 17% per year. Its revenue is up 2.4% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has NWF Group plc Been A Good Investment?
Most shareholders would probably be pleased with NWF Group plc for providing a total return of 34% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
As we noted earlier, NWF Group pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, NWF Group has produced strong EPS growth and shareholder returns over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. And given most shareholders are probably very happy with recent returns, they might even think that Richard deserves a raise!
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for NWF Group that investors should look into moving forward.
Important note: NWF Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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