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Clem Chambers is the CEO of ADVFN Plc (LON:AFN), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether ADVFN pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Clem Chambers Compare With Other Companies In The Industry?
At the time of writing, our data shows that ADVFN Plc has a market capitalization of UK£4.0m, and reported total annual CEO compensation of UK£271k for the year to June 2020. Notably, that's a decrease of 31% over the year before. Notably, the salary which is UK£235.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below UK£149m, we found that the median total CEO compensation was UK£243k. So it looks like ADVFN compensates Clem Chambers in line with the median for the industry. Furthermore, Clem Chambers directly owns UK£93k worth of shares in the company.
Speaking on an industry level, nearly 49% of total compensation represents salary, while the remainder of 51% is other remuneration. ADVFN is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
ADVFN Plc's Growth
Over the last three years, ADVFN Plc has shrunk its earnings per share by 96% per year. In the last year, its revenue is down 19%.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has ADVFN Plc Been A Good Investment?
With a three year total loss of 69% for the shareholders, ADVFN Plc would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we touched on above, ADVFN Plc is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for ADVFN that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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.
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