Yahoo Finance How Much is SysGroup's (LON:SYS) CEO Getting Paid?
This article will reflect on the compensation paid to Adam Binks who has served as CEO of SysGroup plc (LON:SYS) since 2018. This analysis will also assess whether SysGroup pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for SysGroup
Comparing SysGroup plc's CEO Compensation With the industry
Our data indicates that SysGroup plc has a market capitalization of UK£16m, and total annual CEO compensation was reported as UK£250k for the year to March 2020. This means that the compensation hasn't changed much from last year. Notably, the salary which is UK£165.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under UK£154m, the reported median total CEO compensation was UK£261k. From this we gather that Adam Binks is paid around the median for CEOs in the industry. Moreover, Adam Binks also holds UK£73k worth of SysGroup stock directly under their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£165k | UK£165k | 66% |
Other | UK£85k | UK£84k | 34% |
Total Compensation | UK£250k | UK£249k | 100% |
On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. SysGroup is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at SysGroup plc's Growth Numbers
SysGroup plc has seen its earnings per share (EPS) increase by 45% a year over the past three years. In the last year, its revenue is up 52%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has SysGroup plc Been A Good Investment?
Given the total shareholder loss of 24% over three years, many shareholders in SysGroup plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As previously discussed, Adam is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But EPS growth is moving in a favorable direction, certainly a positive sign. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for SysGroup (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.
Important note: SysGroup 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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