Yahoo Finance We Think Shareholders May Want To Consider A Review Of Newmark Security plc's (LON:NWT) CEO Compensation Package
Key Insights
Newmark Security's Annual General Meeting to take place on 28th of February
Total pay for CEO Marie-Claire Dwek includes UK£208.0k salary
Total compensation is similar to the industry average
Over the past three years, Newmark Security's EPS fell by 20% and over the past three years, the total loss to shareholders 38%
Shareholders will probably not be too impressed with the underwhelming results at Newmark Security plc (LON:NWT) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 28th of February. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Check out our latest analysis for Newmark Security
How Does Total Compensation For Marie-Claire Dwek Compare With Other Companies In The Industry?
At the time of writing, our data shows that Newmark Security plc has a market capitalization of UK£4.2m, and reported total annual CEO compensation of UK£260k for the year to April 2022. We note that's a decrease of 23% compared to last year. We note that the salary portion, which stands at UK£208.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the British Electronic industry with market capitalizations below UK£165m, reported a median total CEO compensation of UK£259k. From this we gather that Marie-Claire Dwek is paid around the median for CEOs in the industry.
Component | 2022 | 2021 | Proportion (2022) |
Salary | UK£208k | UK£203k | 80% |
Other | UK£52k | UK£134k | 20% |
Total Compensation | UK£260k | UK£337k | 100% |
Talking in terms of the industry, salary represented approximately 74% of total compensation out of all the companies we analyzed, while other remuneration made up 26% of the pie. Our data reveals that Newmark Security allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Newmark Security plc's Growth
Over the last three years, Newmark Security plc has shrunk its earnings per share by 20% per year. In the last year, its revenue is up 2.9%.
Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Newmark Security plc Been A Good Investment?
With a total shareholder return of -38% over three years, Newmark Security plc shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for Newmark Security (of which 2 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.
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.
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