Yahoo Finance Is Numis Corporation Plc's (LON:NUM) CEO Being Overpaid?
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In 2016 Alex Ham was appointed CEO of Numis Corporation Plc (LON:NUM). 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. 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.
See our latest analysis for Numis
How Does Alex Ham's Compensation Compare With Similar Sized Companies?
Our data indicates that Numis Corporation Plc is worth UK£258m, and total annual CEO compensation is UK£1.8m. (This is based on the year to September 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£388k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£157m to UK£629m. The median total CEO compensation was UK£672k.
Thus we can conclude that Alex Ham receives more in total compensation than the median of a group of companies in the same market, and of similar size to Numis Corporation Plc. However, this doesn't necessarily mean the pay is too high. 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 Numis has changed over time.
Is Numis Corporation Plc Growing?
Earnings per share at Numis Corporation Plc are much the same as they were three years ago, albeit with a positive trend. In the last year, its revenue is down -24%.
I would prefer it if there was revenue growth, but the modest improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Numis Corporation Plc Been A Good Investment?
With a total shareholder return of 32% over three years, Numis Corporation Plc shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We examined the amount Numis Corporation Plc pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. So it's certainly hard to argue that the CEO is modestly paid, although we don't see the remuneration as an issue. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Numis.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
