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Should You Worry About Fox Marble Holdings PLC's (LON:FOX) CEO Pay Cheque?

Simply Wall St

Chris Gilbert has been the CEO of Fox Marble Holdings PLC (LON:FOX) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Fox Marble Holdings

How Does Chris Gilbert's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Fox Marble Holdings PLC has a market cap of UK£6.3m, and reported total annual CEO compensation of €147k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €71k. We took a group of companies with market capitalizations below €181m, and calculated the median CEO total compensation to be €296k.

Most shareholders would consider it a positive that Chris Gilbert takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at Fox Marble Holdings has changed over time.

AIM:FOX CEO Compensation, January 27th 2020

Is Fox Marble Holdings PLC Growing?

Over the last three years Fox Marble Holdings PLC has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). Its revenue is up 21% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Fox Marble Holdings PLC Been A Good Investment?

Since shareholders would have lost about 68% over three years, some Fox Marble Holdings PLC shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Fox Marble Holdings PLC is currently paying its CEO below what is normal for companies of its size.

Since the business is growing, many would argue this suggests the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. We're not critical of the remuneration Chris Gilbert receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Fox Marble Holdings.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.