Yahoo Finance Should You Worry About AFC Energy plc's (LON:AFC) CEO Pay?
In 2014 Adam Bond was appointed CEO of AFC Energy plc (LON:AFC). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for AFC Energy
How Does Adam Bond's Compensation Compare With Similar Sized Companies?
According to our data, AFC Energy plc has a market capitalization of UK£21m, and paid its CEO total annual compensation worth UK£558k over the year to October 2018. While we always look at total compensation first, we note that the salary component is less, at UK£300k. We looked at a group of companies with market capitalizations under UK£163m, and the median CEO total compensation was UK£251k.
As you can see, Adam Bond is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean AFC Energy plc is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at AFC Energy has changed over time.
Is AFC Energy plc Growing?
Over the last three years AFC Energy plc has grown its earnings per share (EPS) by an average of 38% per year (using a line of best fit). In the last year, the company lost virtually all of its revenue.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.
Has AFC Energy plc Been A Good Investment?
With a three year total loss of 77%, AFC Energy plc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at AFC Energy plc with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AFC Energy (free visualization of insider trades).
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.
