Yahoo Finance Why Fiske plc's (LON:FKE) CEO Pay Matters To You
James Quibell Harrison became the CEO of Fiske plc (LON:FKE) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
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See our latest analysis for Fiske
How Does James Quibell Harrison's Compensation Compare With Similar Sized Companies?
According to our data, Fiske plc has a market capitalization of UK£7.5m, and pays its CEO total annual compensation worth UK£156k. (This figure is for the year to May 2018). While we always look at total compensation first, we note that the salary component is less, at UK£122k. We looked at a group of companies with market capitalizations under UK£158m, and the median CEO total compensation was UK£247k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Fiske has changed from year to year.
Is Fiske plc Growing?
Fiske plc has increased its earnings per share (EPS) by an average of 104% a year, over the last three years (using a line of best fit). Its revenue is up 10% over last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Fiske plc Been A Good Investment?
Boasting a total shareholder return of 48% over three years, Fiske plc has done well by shareholders. 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.
In Summary...
It looks like Fiske plc pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that James Quibell Harrison deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Fiske.
Important note: Fiske may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
