Yahoo Finance What Can We Make Of Falanx Group's (LON:FLX) CEO Compensation?
Mike Read has been the CEO of Falanx Group Limited (LON:FLX) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for Falanx Group
Comparing Falanx Group Limited's CEO Compensation With the industry
Our data indicates that Falanx Group Limited has a market capitalization of UK£4.9m, and total annual CEO compensation was reported as UK£109k for the year to March 2020. We note that's a decrease of 37% compared to last year. Notably, the salary of UK£109k is the entirety of the CEO compensation.
On comparing similar-sized companies in the industry with market capitalizations below UK£150m, we found that the median total CEO compensation was UK£292k. Accordingly, Falanx Group pays its CEO under the industry median. Furthermore, Mike Read directly owns UK£142k worth of shares in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£109k | UK£148k | 100% |
Other | - | UK£25k | - |
Total Compensation | UK£109k | UK£173k | 100% |
On an industry level, around 80% of total compensation represents salary and 20% is other remuneration. On a company level, Falanx Group prefers to reward its CEO through a salary, opting not to pay Mike Read through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Falanx Group Limited's Growth
Falanx Group Limited's earnings per share (EPS) grew 35% per year over the last three years. In the last year, its revenue is up 12%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Falanx Group Limited Been A Good Investment?
Given the total shareholder loss of 78% over three years, many shareholders in Falanx Group Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
Falanx Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Falanx Group Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, the company has impressed with its EPS growth over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. But we believe shareholders would want to see healthier returns before the CEO gets a raise.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 2 which are a bit unpleasant) in Falanx Group we think you should know about.
Switching gears from Falanx Group, 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
