Euan N. Fraser has been the CEO of Alpha Financial Markets Consulting plc (LON:AFM) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Alpha Financial Markets Consulting.
Comparing Alpha Financial Markets Consulting plc's CEO Compensation With the industry
Our data indicates that Alpha Financial Markets Consulting plc has a market capitalization of UK£236m, and total annual CEO compensation was reported as UK£583k for the year to March 2020. Notably, that's an increase of 9.0% over the year before. We note that the salary portion, which stands at UK£566.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations ranging from UK£148m to UK£592m, the reported median CEO total compensation was UK£440k. Accordingly, our analysis reveals that Alpha Financial Markets Consulting plc pays Euan N. Fraser north of the industry median. Moreover, Euan N. Fraser also holds UK£1.3m worth of Alpha Financial Markets Consulting stock directly under their own name.
On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. Alpha Financial Markets Consulting has gone down a largely traditional route, paying Euan N. Fraser a high salary, giving it preference over non-salary benefits. 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.
A Look at Alpha Financial Markets Consulting plc's Growth Numbers
Alpha Financial Markets Consulting plc has seen its earnings per share (EPS) increase by 42% a year over the past three years. It achieved revenue growth of 18% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Alpha Financial Markets Consulting plc Been A Good Investment?
Boasting a total shareholder return of 45% over three years, Alpha Financial Markets Consulting plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Euan N. receives almost all of their compensation through a salary. As previously discussed, Euan N. is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. And given most shareholders are probably very happy with recent returns, they might even think that Euan N. deserves a raise!
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 5 warning signs for Alpha Financial Markets Consulting that you should be aware of before investing.
Switching gears from Alpha Financial Markets Consulting, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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