Yahoo Finance This Is The Reason Why We Think Access Intelligence Plc's (LON:ACC) CEO Might Be Underpaid
Shareholders will be pleased by the impressive results for Access Intelligence Plc (LON:ACC) recently and CEO Marguarite Arnold has played a key role. At the upcoming AGM on 13 May 2021, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
View our latest analysis for Access Intelligence
How Does Total Compensation For Marguarite Arnold Compare With Other Companies In The Industry?
According to our data, Access Intelligence Plc has a market capitalization of UK£111m, and paid its CEO total annual compensation worth UK£260k over the year to November 2020. That's a slight decrease of 3.8% on the prior year. Notably, the salary of UK£260k is the entirety of the CEO compensation.
On examining similar-sized companies in the industry with market capitalizations between UK£72m and UK£288m, we discovered that the median CEO total compensation of that group was UK£395k. In other words, Access Intelligence pays its CEO lower than the industry median. Furthermore, Marguarite Arnold directly owns UK£979k worth of shares in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£260k | UK£270k | 100% |
Other | - | - | - |
Total Compensation | UK£260k | UK£270k | 100% |
On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. At the company level, Access Intelligence pays Marguarite Arnold solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Access Intelligence Plc's Growth Numbers
Access Intelligence Plc has seen its earnings per share (EPS) increase by 17% a year over the past three years. It achieved revenue growth of 42% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Access Intelligence Plc Been A Good Investment?
We think that the total shareholder return of 214%, over three years, would leave most Access Intelligence Plc shareholders smiling. 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...
Access Intelligence pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.
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 Access Intelligence that investors should think about before committing capital to this stock.
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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