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Should You Worry About CAP-XX Limited's (LON:CPX) CEO Salary Level?

The CEO of CAP-XX Limited (LON:CPX) is Anthony Kongats. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for CAP-XX

How Does Anthony Kongats's Compensation Compare With Similar Sized Companies?

According to our data, CAP-XX Limited has a market capitalization of UK£13m, and paid its CEO total annual compensation worth AU$599k over the year to June 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$322k. We looked at a group of companies with market capitalizations under AU$292m, and the median CEO total compensation was AU$466k.

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So Anthony Kongats receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at CAP-XX, below.

AIM:CPX CEO Compensation, November 11th 2019
AIM:CPX CEO Compensation, November 11th 2019

Is CAP-XX Limited Growing?

On average over the last three years, CAP-XX Limited has shrunk earnings per share by 19% each year (measured with a line of best fit). Its revenue is down 35% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has CAP-XX Limited Been A Good Investment?

Given the total loss of 16% over three years, many shareholders in CAP-XX Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Anthony Kongats is paid around the same as most CEOs of similar size companies.

Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it's wise for the company to pay any more, before returns improve. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CAP-XX.

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.

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.