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How Much is Cenkos Securities plc's (LON:CNKS) CEO Getting Paid?

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Anthony Hotson is the CEO of Cenkos Securities plc (LON:CNKS). 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. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Cenkos Securities

How Does Anthony Hotson's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Cenkos Securities plc has a market cap of UK£27m, and is paying total annual CEO compensation of UK£609k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£250k. We looked at a group of companies with market capitalizations under UK£160m, and the median CEO total compensation was UK£253k.

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As you can see, Anthony Hotson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Cenkos Securities plc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Cenkos Securities has changed over time.

AIM:CNKS CEO Compensation, July 19th 2019
AIM:CNKS CEO Compensation, July 19th 2019

Is Cenkos Securities plc Growing?

Over the last three years Cenkos Securities plc has shrunk its earnings per share by an average of 24% per year (measured with a line of best fit). In the last year, its revenue is down -24%.

Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Cenkos Securities plc Been A Good Investment?

Given the total loss of 51% over three years, many shareholders in Cenkos Securities plc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at Cenkos Securities plc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cenkos Securities.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.