Yahoo Finance A Quick Analysis On Totally's (LON:TLY) CEO Compensation
This article will reflect on the compensation paid to Wendy Lawrence who has served as CEO of Totally plc (LON:TLY) since 2013. 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 Totally
How Does Total Compensation For Wendy Lawrence Compare With Other Companies In The Industry?
According to our data, Totally plc has a market capitalization of UK£32m, and paid its CEO total annual compensation worth UK£226k over the year to March 2020. That's a notable increase of 39% on last year. In particular, the salary of UK£161.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below UK£154m, we found that the median total CEO compensation was UK£195k. So it looks like Totally compensates Wendy Lawrence in line with the median for the industry.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£161k | UK£140k | 71% |
Other | UK£65k | UK£23k | 29% |
Total Compensation | UK£226k | UK£163k | 100% |
On an industry level, roughly 74% of total compensation represents salary and 26% is other remuneration. There isn't a significant difference between Totally and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Totally plc's Growth
Over the last three years, Totally plc has shrunk its earnings per share by 6.0% per year. In the last year, its revenue is up 36%.
The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Totally plc Been A Good Investment?
Given the total shareholder loss of 68% over three years, many shareholders in Totally plc are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As we noted earlier, Totally pays its CEO in line with similar-sized companies belonging to the same industry. However, revenues have increased over the past year, a positive sign for the company. On the other hand, shareholder returns for Wendy are negative over the same period. EPS growth is bleak as well, adding fuel to the fire. We'd say CEO compensation isn't unfair, but shareholders may be wary of a bump in pay before the company substantially improves overall performance.
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 3 warning signs (and 1 which is potentially serious) in Totally we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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