Alex Ham has been the CEO of Numis Corporation Plc (LON:NUM) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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 Alex Ham's Compensation Compare With Similar Sized Companies?
According to our data, Numis Corporation Plc has a market capitalization of UK£241m, and paid its CEO total annual compensation worth UK£1.8m over the year to September 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£388k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£155m to UK£621m. The median total CEO compensation was UK£694k.
As you can see, Alex Ham is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Numis Corporation 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.
The graphic below shows how CEO compensation at Numis has changed from year to year.
Is Numis Corporation Plc Growing?
Numis Corporation Plc saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. Its revenue is down 24% over last year.
I would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see modest EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Numis Corporation Plc Been A Good Investment?
Numis Corporation Plc has served shareholders reasonably well, with a total return of 20% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
We examined the amount Numis Corporation Plc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Numis (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 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.