Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Mike Allcock has been the CEO of FW Thorpe Plc (LON:TFW) since 2010. First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Mike Allcock's Compensation Compare With Similar Sized Companies?
According to our data, FW Thorpe Plc has a market capitalization of UK£372m, and pays its CEO total annual compensation worth UK£629k. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at UK£256k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£159m to UK£635m. The median total CEO compensation was UK£682k.
So Mike Allcock receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at FW Thorpe has changed over time.
Is FW Thorpe Plc Growing?
FW Thorpe Plc has increased its earnings per share (EPS) by an average of 10.0% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 1.6%.
I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.
Has FW Thorpe Plc Been A Good Investment?
Most shareholders would probably be pleased with FW Thorpe Plc for providing a total return of 51% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Mike Allcock is paid around what is normal the leaders of comparable size companies.
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So all things considered I'd venture that the CEO pay is appropriate. So you may want to check if insiders are buying FW Thorpe shares with their own money (free access).
Important note: FW Thorpe 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 firstname.lastname@example.org. 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.