In 2010 Mike Allcock was appointed CEO of FW Thorpe Plc (LON:TFW). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Mike Allcock's Compensation Compare With Similar Sized Companies?
According to our data, FW Thorpe Plc has a market capitalization of UK£380m, and paid its CEO total annual compensation worth UK£664k over the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at UK£235k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£154m to UK£615m. The median total CEO compensation was UK£663k.
So Mike Allcock 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.
You can see a visual representation of the CEO compensation at FW Thorpe, below.
Is FW Thorpe Plc Growing?
FW Thorpe Plc has increased its earnings per share (EPS) by an average of 8.1% a year, over the last three years (using a line of best fit). Revenue was pretty flat on last year.
I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.
Has FW Thorpe Plc Been A Good Investment?
FW Thorpe Plc has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Remuneration for Mike Allcock is close enough to the median pay for a CEO of a similar sized company .
We think many would like to see better growth. While there is room for improvement, we haven't seen evidence to suggest the pay is too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling FW Thorpe shares (free trial).
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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