Yahoo Finance We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Frenkel Topping Group Plc's (LON:FEN) CEO For Now
CEO Richard Fraser has done a decent job of delivering relatively good performance at Frenkel Topping Group Plc (LON:FEN) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 22 June 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for Frenkel Topping Group
Comparing Frenkel Topping Group Plc's CEO Compensation With the industry
Our data indicates that Frenkel Topping Group Plc has a market capitalization of UK£54m, and total annual CEO compensation was reported as UK£306k for the year to December 2020. We note that's an increase of 30% above last year. We note that the salary portion, which stands at UK£255.7k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below UK£142m, we found that the median total CEO compensation was UK£183k. This suggests that Richard Fraser is paid more than the median for the industry. What's more, Richard Fraser holds UK£1.0m worth of shares in the company in their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£256k | UK£210k | 84% |
Other | UK£50k | UK£25k | 16% |
Total Compensation | UK£306k | UK£235k | 100% |
On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. It's interesting to note that Frenkel Topping Group pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Frenkel Topping Group Plc's Growth Numbers
Over the last three years, Frenkel Topping Group Plc has shrunk its earnings per share by 17% per year. It achieved revenue growth of 19% over the last year.
The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. 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. 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 Frenkel Topping Group Plc Been A Good Investment?
Frenkel Topping Group Plc has generated a total shareholder return of 16% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
To Conclude...
Some shareholders will be pleased by the relatively good results, however, the results could still be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.
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. In our study, we found 3 warning signs for Frenkel Topping Group you should be aware of, and 1 of them is potentially serious.
Important note: Frenkel Topping 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.
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