Yahoo Finance Should You Worry About Fiske plc’s (LON:FKE) CEO Salary Level?
James Quibell Harrison became the CEO of Fiske plc (LON:FKE) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Fiske
How Does James Quibell Harrison’s Compensation Compare With Similar Sized Companies?
Our data indicates that Fiske plc is worth UK£9.6m, and total annual CEO compensation is UK£156k. (This figure is for the year to 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£122k. We took a group of companies with market capitalizations below UK£157m, and calculated the median CEO compensation to be UK£244k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Fiske has changed from year to year.
Is Fiske plc Growing?
Over the last three years Fiske plc has grown its earnings per share (EPS) by an average of 85% per year. It achieved revenue growth of 30% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
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 79% over three years, Fiske plc has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
It appears that Fiske plc remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. 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. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Fiske shares (free trial).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
