Yahoo Finance How Much is Ramsdens Holdings' (LON:RFX) CEO Getting Paid?
This article will reflect on the compensation paid to Peter Kenyon who has served as CEO of Ramsdens Holdings PLC (LON:RFX) since 2008. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Ramsdens Holdings
Comparing Ramsdens Holdings PLC's CEO Compensation With the industry
Our data indicates that Ramsdens Holdings PLC has a market capitalization of UK£42m, and total annual CEO compensation was reported as UK£377k for the year to September 2020. That's a notable increase of 23% on last year. We note that the salary portion, which stands at UK£301.2k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below UK£150m, we found that the median total CEO compensation was UK£427k. This suggests that Ramsdens Holdings remunerates its CEO largely in line with the industry average. What's more, Peter Kenyon holds UK£1.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£301k | UK£183k | 80% |
Other | UK£76k | UK£125k | 20% |
Total Compensation | UK£377k | UK£307k | 100% |
On an industry level, roughly 80% of total compensation represents salary and 20% is other remuneration. There isn't a significant difference between Ramsdens Holdings and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Ramsdens Holdings PLC's Growth
Over the past three years, Ramsdens Holdings PLC has seen its earnings per share (EPS) grow by 6.7% per year. Its revenue is down 5.4% over the previous year.
We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Ramsdens Holdings PLC Been A Good Investment?
With a three year total loss of 19% for the shareholders, Ramsdens Holdings PLC would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As we touched on above, Ramsdens Holdings PLC is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. This doesn't look good when you place it against the backdrop of negative shareholder returns and flat EPS growth. Although we wouldn't say CEO compensation is exceptionally high, it isn't very low either. Shareholders might want to see substantial improvements in returns before agreeing that Peter deserves a raise.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which is a bit concerning) in Ramsdens Holdings we think you should know about.
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.
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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