Yahoo Finance Shareholders May Not Be So Generous With Quadrise Plc's (LON:QED) CEO Compensation And Here's Why
Key Insights
Quadrise will host its Annual General Meeting on 27th of November
CEO Jason Miles' total compensation includes salary of UK£271.0k
Total compensation is similar to the industry average
Quadrise's EPS grew by 37% over the past three years while total shareholder loss over the past three years was 34%
In the past three years, the share price of Quadrise Plc (LON:QED) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 27th of November. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
View our latest analysis for Quadrise
Comparing Quadrise Plc's CEO Compensation With The Industry
Our data indicates that Quadrise Plc has a market capitalization of UK£19m, and total annual CEO compensation was reported as UK£356k for the year to June 2023. We note that's an increase of 19% above last year. In particular, the salary of UK£271.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the British Oil and Gas industry with market capitalizations below UK£160m, we found that the median total CEO compensation was UK£318k. From this we gather that Jason Miles is paid around the median for CEOs in the industry. Moreover, Jason Miles also holds UK£47k worth of Quadrise stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | UK£271k | UK£251k | 76% |
Other | UK£85k | UK£49k | 24% |
Total Compensation | UK£356k | UK£300k | 100% |
Talking in terms of the industry, salary represented approximately 72% of total compensation out of all the companies we analyzed, while other remuneration made up 28% of the pie. Quadrise is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Quadrise Plc's Growth
Over the past three years, Quadrise Plc has seen its earnings per share (EPS) grow by 37% per year. In the last year, its revenue has collapsed effectively to zero.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Quadrise Plc Been A Good Investment?
The return of -34% over three years would not have pleased Quadrise Plc shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 5 warning signs for Quadrise (of which 3 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.
Important note: Quadrise 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
