Yahoo Finance Shareholders Will Probably Hold Off On Increasing Fiske plc's (LON:FKE) CEO Compensation For The Time Being
Key Insights
Fiske will host its Annual General Meeting on 23rd of November
CEO James Philip Harrison's total compensation includes salary of UK£205.0k
The overall pay is comparable to the industry average
Over the past three years, Fiske's EPS grew by 32% and over the past three years, the total loss to shareholders 15%
In the past three years, the share price of Fiske plc (LON:FKE) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 23rd of November could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
View our latest analysis for Fiske
Comparing Fiske plc's CEO Compensation With The Industry
According to our data, Fiske plc has a market capitalization of UK£6.5m, and paid its CEO total annual compensation worth UK£218k over the year to June 2023. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at UK£205.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the British Capital Markets industry with market capitalizations below UK£161m, reported a median total CEO compensation of UK£210k. So it looks like Fiske compensates James Philip Harrison in line with the median for the industry. Furthermore, James Philip Harrison directly owns UK£120k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | UK£205k | UK£213k | 94% |
Other | UK£13k | UK£8.6k | 6% |
Total Compensation | UK£218k | UK£222k | 100% |
On an industry level, around 52% of total compensation represents salary and 48% is other remuneration. Fiske is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Fiske plc's Growth
Over the past three years, Fiske plc has seen its earnings per share (EPS) grow by 32% per year. In the last year, its revenue is up 11%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Fiske plc Been A Good Investment?
Since shareholders would have lost about 15% over three years, some Fiske plc investors would surely be feeling negative emotions. 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. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Fiske that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
