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Is Newmark Security plc's (LON:NWT) CEO Pay Fair?

Simply Wall St

Marie-Claire Dwek has been the CEO of Newmark Security plc (LON:NWT) since 2013. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Newmark Security

How Does Marie-Claire Dwek's Compensation Compare With Similar Sized Companies?

According to our data, Newmark Security plc has a market capitalization of UK£5.9m, and paid its CEO total annual compensation worth UK£310k over the year to April 2019. We think total compensation is more important but we note that the CEO salary is lower, at UK£193k. We took a group of companies with market capitalizations below UK£154m, and calculated the median CEO total compensation to be UK£249k.

So Marie-Claire Dwek receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Newmark Security has changed over time.

AIM:NWT CEO Compensation, December 4th 2019

Is Newmark Security plc Growing?

On average over the last three years, Newmark Security plc has shrunk earnings per share by 17% each year (measured with a line of best fit). Its revenue is up 22% over last year.

Unfortunately, earnings per share have trended lower over the last three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Newmark Security plc Been A Good Investment?

Since shareholders would have lost about 5.7% over three years, some Newmark Security plc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Marie-Claire Dwek is paid around the same as most CEOs of similar size companies.

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Newmark Security shares (free trial).

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.

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.

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