Yahoo Finance How Much Does Symphony Environmental Technologies' (LON:SYM) CEO Make?
Michael Laurier is the CEO of Symphony Environmental Technologies plc (LON:SYM), and in this article, we analyze the executive's compensation package 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 Symphony Environmental Technologies.
View our latest analysis for Symphony Environmental Technologies
Comparing Symphony Environmental Technologies plc's CEO Compensation With the industry
According to our data, Symphony Environmental Technologies plc has a market capitalization of UK£48m, and paid its CEO total annual compensation worth UK£211k over the year to December 2019. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at UK£201.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under UK£152m, the reported median total CEO compensation was UK£216k. From this we gather that Michael Laurier is paid around the median for CEOs in the industry. Moreover, Michael Laurier also holds UK£6.4m worth of Symphony Environmental Technologies 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 | UK£201k | UK£200k | 95% |
Other | UK£10k | UK£13k | 5% |
Total Compensation | UK£211k | UK£213k | 100% |
Talking in terms of the industry, salary represented approximately 71% of total compensation out of all the companies we analyzed, while other remuneration made up 29% of the pie. Symphony Environmental Technologies has gone down a largely traditional route, paying Michael Laurier a high salary, giving it preference over non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Symphony Environmental Technologies plc's Growth Numbers
Over the last three years, Symphony Environmental Technologies plc has shrunk its earnings per share by 89% per year. It saw its revenue drop 6.6% over the last year.
Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Symphony Environmental Technologies plc Been A Good Investment?
Most shareholders would probably be pleased with Symphony Environmental Technologies plc for providing a total return of 177% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Symphony Environmental Technologies pays its CEO a majority of compensation through a salary. As we noted earlier, Symphony Environmental Technologies pays its CEO in line with similar-sized companies belonging to the same industry. Some investors may take issue with this, especially considering shrinking EPS for the past three years. On the other hand, shareholder returns are showing positive trends over the same time frame. We wouldn't say CEO compensation is too high, but shareholders might think performance needs to be improved before paying any more.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Symphony Environmental Technologies that investors should think about before committing capital to this stock.
Important note: Symphony Environmental Technologies 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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