Is FairFX Group Plc's (LON:FFX) CEO Pay Justified?
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Ian Alexander Strafford-Taylor became the CEO of FairFX Group Plc (LON:FFX) in 2012. 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. 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.
View our latest analysis for FairFX Group
How Does Ian Alexander Strafford-Taylor's Compensation Compare With Similar Sized Companies?
According to our data, FairFX Group Plc has a market capitalization of UK£194m, and pays its CEO total annual compensation worth UK£263k. (This figure is for the year to December 2018). That's actually a decrease on the year before. It is worth noting that the CEO compensation consists almost entirely of the salary, worth UK£263k. We looked at a group of companies with market capitalizations from UK£79m to UK£314m, and the median CEO total compensation was UK£545k.
Most shareholders would consider it a positive that Ian Alexander Strafford-Taylor takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at FairFX Group, below.
Is FairFX Group Plc Growing?
FairFX Group Plc has increased its earnings per share (EPS) by an average of 123% a year, over the last three years (using a line of best fit). It achieved revenue growth of 69% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has FairFX Group Plc Been A Good Investment?
Most shareholders would probably be pleased with FairFX Group Plc for providing a total return of 287% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
FairFX Group Plc is currently paying its CEO below what is normal for companies of its size. 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 Ian Alexander Strafford-Taylor deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying FairFX Group shares with their own money (free access).
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.
