U.S. markets closed
  • S&P 500

    3,841.94
    +73.47 (+1.95%)
     
  • Dow 30

    31,496.30
    +572.16 (+1.85%)
     
  • Nasdaq

    12,920.15
    +196.68 (+1.55%)
     
  • Russell 2000

    2,192.21
    +45.29 (+2.11%)
     
  • Crude Oil

    66.28
    +2.45 (+3.84%)
     
  • Gold

    1,698.20
    -2.50 (-0.15%)
     
  • Silver

    25.30
    -0.17 (-0.65%)
     
  • EUR/USD

    1.1916
    -0.0063 (-0.52%)
     
  • 10-Yr Bond

    1.5540
    +0.0040 (+0.26%)
     
  • GBP/USD

    1.3834
    -0.0060 (-0.43%)
     
  • USD/JPY

    108.3600
    +0.3840 (+0.36%)
     
  • BTC-USD

    49,618.58
    +923.52 (+1.90%)
     
  • CMC Crypto 200

    982.93
    +39.75 (+4.21%)
     
  • FTSE 100

    6,630.52
    -20.36 (-0.31%)
     
  • Nikkei 225

    28,864.32
    -65.78 (-0.23%)
     

Here's What We Think About Xeros Technology Group plc's (LON:XSG) CEO Pay

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.

Mark Nichols became the CEO of Xeros Technology Group plc (LON:XSG) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.

View our latest analysis for Xeros Technology Group

How Does Mark Nichols's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Xeros Technology Group plc has a market cap of UK£7.8m, and reported total annual CEO compensation of UK£705k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£280k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations under UK£161m, and the median CEO total compensation was UK£265k.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 58% of total compensation out of all the companies we analysed, while other remuneration made up 42% of the pie. It's interesting to note that Xeros Technology Group allocates a smaller portion of compensation to salary in comparison to the broader industry.

It would therefore appear that Xeros Technology Group plc pays Mark Nichols more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. The graphic below shows how CEO compensation at Xeros Technology Group has changed from year to year.

AIM:XSG CEO Compensation May 1st 2020
AIM:XSG CEO Compensation May 1st 2020

Is Xeros Technology Group plc Growing?

Over the last three years Xeros Technology Group plc has seen earnings per share (EPS) move in a positive direction by an average of 18% per year (using a line of best fit). Its revenue is down 49% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.

Has Xeros Technology Group plc Been A Good Investment?

With a three year total loss of 100%, Xeros Technology Group plc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We examined the amount Xeros Technology Group 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.

However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. On another note, Xeros Technology Group has 5 warning signs (and 2 which are a bit concerning) we think you should know about.

Important note: Xeros Technology Group 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.

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.

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. Thank you for reading.