Does McKay Securities Plc’s (LON:MCKS) CEO Pay Compare Well With Peers?
Simon Perkins became the CEO of McKay Securities Plc (LON:MCKS) in 2003. 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.
Check out our latest analysis for McKay Securities
How Does Simon Perkins’s Compensation Compare With Similar Sized Companies?
According to our data, McKay Securities Plc has a market capitalization of UK£228m, and pays its CEO total annual compensation worth UK£902k. (This number is for the twelve months until 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£384k. We looked at a group of companies with market capitalizations from UK£79m to UK£314m, and the median CEO compensation was UK£517k.
Thus we can conclude that Simon Perkins receives more in total compensation than the median of a group of companies in the same market, and of similar size to McKay Securities Plc. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at McKay Securities has changed from year to year.
Is McKay Securities Plc Growing?
On average over the last three years, McKay Securities Plc has shrunk earnings per share by 7.8% each year. It achieved revenue growth of 2.6% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
It could be important to check this free visual depiction of what analysts expect for the future.
Has McKay Securities Plc Been A Good Investment?
With a three year total loss of 0.2%, McKay Securities Plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We examined the amount McKay Securities Plc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. Some might well form the view that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling McKay Securities (free visualization of insider trades).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
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.
