Is Ferrexpo Plc's (LON:FXPO) CEO Pay Fair?
Kostyantin Zhevago has been the CEO of Ferrexpo Plc (LON:FXPO) since 2008. 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 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 Ferrexpo
How Does Kostyantin Zhevago's Compensation Compare With Similar Sized Companies?
Our data indicates that Ferrexpo Plc is worth UK£771m, and total annual CEO compensation was reported as US$251k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$240k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$1.2m.
A first glance this seems like a real positive for shareholders, since Kostyantin Zhevago is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Ferrexpo has changed over time.
Is Ferrexpo Plc Growing?
Ferrexpo Plc has increased its earnings per share (EPS) by an average of 38% a year, over the last three years (using a line of best fit). Its revenue is up 18% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Ferrexpo Plc Been A Good Investment?
I think that the total shareholder return of 58%, over three years, would leave most Ferrexpo Plc shareholders smiling. 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...
It looks like Ferrexpo Plc pays its CEO less than similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Kostyantin Zhevago deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Ferrexpo shares with their own money (free access).
Important note: Ferrexpo may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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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.
