The CEO of AFH Financial Group Plc (LON:AFHP) is Alan Hudson. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Alan Hudson's Compensation Compare With Similar Sized Companies?
Our data indicates that AFH Financial Group Plc is worth UK£153m, and total annual CEO compensation was reported as UK£659k for the year to October 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£483k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£77m to UK£307m. The median total CEO compensation was UK£509k.
That means Alan Hudson receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at AFH Financial Group has changed over time.
Is AFH Financial Group Plc Growing?
AFH Financial Group Plc has increased its earnings per share (EPS) by an average of 41% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 47%.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.
Has AFH Financial Group Plc Been A Good Investment?
I think that the total shareholder return of 100%, over three years, would leave most AFH Financial Group Plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Alan Hudson is paid around what is normal for the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying AFH Financial Group shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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