Yahoo Finance A Quick Analysis On QinetiQ Group's (LON:QQ.) CEO Salary
Steve Wadey has been the CEO of QinetiQ Group plc (LON:QQ.) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for QinetiQ Group
Comparing QinetiQ Group plc's CEO Compensation With the industry
At the time of writing, our data shows that QinetiQ Group plc has a market capitalization of UK£1.7b, and reported total annual CEO compensation of UK£2.0m for the year to March 2020. That's a notable decrease of 15% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£610k.
On comparing similar companies from the same industry with market caps ranging from UK£718m to UK£2.3b, we found that the median CEO total compensation was UK£1.6m. So it looks like QinetiQ Group compensates Steve Wadey in line with the median for the industry. Moreover, Steve Wadey also holds UK£1.6m worth of QinetiQ Group stock directly under their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£610k | UK£596k | 31% |
Other | UK£1.4m | UK£1.7m | 69% |
Total Compensation | UK£2.0m | UK£2.3m | 100% |
On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. It's interesting to note that QinetiQ Group allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
QinetiQ Group plc's Growth
Over the last three years, QinetiQ Group plc has shrunk its earnings per share by 5.0% per year. It achieved revenue growth of 22% over the last year.
Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has QinetiQ Group plc Been A Good Investment?
Most shareholders would probably be pleased with QinetiQ Group plc for providing a total return of 57% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
As we touched on above, QinetiQ Group 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. Shareholder returns for the company have been strong for the last three years. At the same time, revenues are also moving northwards at a healthy pace. On a sour note, EPS growth has been negative. Overall, the company's performance hasn't been that disappointing for us to object the CEO compensation.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for QinetiQ Group that you should be aware of before investing.
Important note: QinetiQ Group 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
