Yahoo Finance Should You Be Pleased About The CEO Pay At Block Energy Plc's (LON:BLOE)
Paul Haywood became the CEO of Block Energy Plc (LON:BLOE) in 2017. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Block Energy
How Does Paul Haywood's Compensation Compare With Similar Sized Companies?
According to our data, Block Energy Plc has a market capitalization of UK£7.1m, and paid its CEO total annual compensation worth US$342k over the year to December 2019. While we always look at total compensation first, we note that the salary component is less, at US$267k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$336k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 66% of total compensation represents salary and 34% is other remuneration. Block Energy is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation
That means Paul Haywood receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see a visual representation of the CEO compensation at Block Energy, below.
Is Block Energy Plc Growing?
On average over the last three years, Block Energy Plc has shrunk earnings per share by 19% each year (measured with a line of best fit). It saw its revenue drop 14% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. 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. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Block Energy Plc Been A Good Investment?
Since shareholders would have lost about 49% over three years, some Block Energy Plc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for Paul Haywood is close enough to the median pay for a CEO of a similar sized company .
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. CEO compensation is an important area to keep your eyes on, but we've also identified 6 warning signs for Block Energy (4 can't be ignored!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. Thank you for reading.
