Yahoo Finance Why Foxtons Group plc's (LON:FOXT) CEO Pay Matters To You
Nic Budden has been the CEO of Foxtons Group plc (LON:FOXT) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
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Check out our latest analysis for Foxtons Group
How Does Nic Budden's Compensation Compare With Similar Sized Companies?
Our data indicates that Foxtons Group plc is worth UK£159m, and total annual CEO compensation is UK£910k. (This figure is for the year to December 2018). That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at UK£550k. We examined companies with market caps from UK£79m to UK£315m, and discovered that the median CEO total compensation of that group was UK£514k.
It would therefore appear that Foxtons Group plc pays Nic Budden more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Foxtons Group, below.
Is Foxtons Group plc Growing?
On average over the last three years, Foxtons Group plc has shrunk earnings per share by 103% each year (measured with a line of best fit). Its revenue is down -5.2% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Foxtons Group plc Been A Good Investment?
With a three year total loss of 64%, Foxtons Group plc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Foxtons Group plc pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! So you may want to check if insiders are buying Foxtons Group shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
