Here's Why FW Thorpe Plc's (LON:TFW) CEO Compensation Is The Least Of Shareholders' Concerns
Key Insights
FW Thorpe will host its Annual General Meeting on 16th of November
Total pay for CEO Mike Allcock includes UK£274.0k salary
Total compensation is similar to the industry average
Over the past three years, FW Thorpe's EPS grew by 18% and over the past three years, the total shareholder return was 16%
Performance at FW Thorpe Plc (LON:TFW) has been reasonably good and CEO Mike Allcock has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 16th of November. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
See our latest analysis for FW Thorpe
How Does Total Compensation For Mike Allcock Compare With Other Companies In The Industry?
According to our data, FW Thorpe Plc has a market capitalization of UK£416m, and paid its CEO total annual compensation worth UK£644k over the year to June 2023. That's a notable increase of 18% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£274k.
For comparison, other companies in the British Electrical industry with market capitalizations ranging between UK£163m and UK£652m had a median total CEO compensation of UK£728k. This suggests that FW Thorpe remunerates its CEO largely in line with the industry average. What's more, Mike Allcock holds UK£786k worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | UK£274k | UK£234k | 43% |
Other | UK£370k | UK£313k | 57% |
Total Compensation | UK£644k | UK£547k | 100% |
On an industry level, roughly 64% of total compensation represents salary and 36% is other remuneration. FW Thorpe sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
FW Thorpe Plc's Growth
FW Thorpe Plc has seen its earnings per share (EPS) increase by 18% a year over the past three years. Its revenue is up 23% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has FW Thorpe Plc Been A Good Investment?
With a total shareholder return of 16% over three years, FW Thorpe Plc shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
Shareholders may want to check for free if FW Thorpe insiders are buying or selling shares.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
