Most Shareholders Will Probably Find That The CEO Compensation For FW Thorpe Plc (LON:TFW) Is Reasonable
CEO Mike Allcock has done a decent job of delivering relatively good performance at FW Thorpe Plc (LON:TFW) recently. 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 17 November 2022. 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£513m, and paid its CEO total annual compensation worth UK£547k over the year to June 2022. That's a notable increase of 27% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£234k.
On examining similar-sized companies in the industry with market capitalizations between UK£172m and UK£686m, we discovered that the median CEO total compensation of that group was UK£703k. From this we gather that Mike Allcock is paid around the median for CEOs in the industry. Moreover, Mike Allcock also holds UK£909k worth of FW Thorpe stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | UK£234k | UK£213k | 43% |
Other | UK£313k | UK£218k | 57% |
Total Compensation | UK£547k | UK£431k | 100% |
On an industry level, roughly 37% of total compensation represents salary and 63% is other remuneration. According to our research, FW Thorpe has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at FW Thorpe Plc's Growth Numbers
Over the past three years, FW Thorpe Plc has seen its earnings per share (EPS) grow by 7.2% per year. It achieved revenue growth of 22% over the last year.
We would argue that the modest growth in revenue is a notable positive. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. 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?
We think that the total shareholder return of 67%, over three years, would leave most FW Thorpe 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...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling FW Thorpe (free visualization of insider trades).
Important note: FW Thorpe 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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