A Look At Iofina's (LON:IOF) CEO Remuneration
This article will reflect on the compensation paid to Tom Becker who has served as CEO of Iofina plc (LON:IOF) since 2014. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Iofina.
See our latest analysis for Iofina
Comparing Iofina plc's CEO Compensation With the industry
At the time of writing, our data shows that Iofina plc has a market capitalization of UK£25m, and reported total annual CEO compensation of US$276k for the year to December 2019. We note that's an increase of 9.9% above last year. Notably, the salary which is US$235.6k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under UK£155m, the reported median total CEO compensation was US$280k. This suggests that Iofina remunerates its CEO largely in line with the industry average.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$236k | US$211k | 85% |
Other | US$40k | US$40k | 15% |
Total Compensation | US$276k | US$251k | 100% |
On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. Iofina pays out 85% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Iofina plc's Growth
Iofina plc has seen its earnings per share (EPS) increase by 50% a year over the past three years. In the last year, its revenue is up 22%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Iofina plc Been A Good Investment?
Iofina plc has generated a total shareholder return of 2.0% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
To Conclude...
As we noted earlier, Iofina pays its CEO in line with similar-sized companies belonging to the same industry. But earnings growth for the company has been strong over the last three years, though shareholder returns in comparison haven't been as impressive. Considering overall performance, we'd say the compensation is fair, although stockholders will want to see higher returns moving forward.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Iofina (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.
Important note: Iofina is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
