J. Emeny became the CEO of Fuller, Smith & Turner P.L.C. (LON:FSTA) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Fuller Smith & Turner
How Does J. Emeny’s Compensation Compare With Similar Sized Companies?
Our data indicates that Fuller, Smith & Turner P.L.C. is worth UK£382m, and total annual CEO compensation was reported as UK£959k for the year to March 2019. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£430k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£161m to UK£645m. The median total CEO compensation was UK£814k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it’s no different in the case of Fuller Smith & Turner. On an industry level, roughly 65% of total compensation represents salary and 35% is other remuneration. Readers will want to know that Fuller Smith & Turner pays a modest slice of remuneration through salary, as compared to the wider sector.
So J. Emeny 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. The graphic below shows how CEO compensation at Fuller Smith & Turner has changed from year to year.
Is Fuller, Smith & Turner P.L.C. Growing?
Over the last three years Fuller, Smith & Turner P.L.C. has shrunk its earnings per share by an average of 30% per year (measured with a line of best fit). It achieved revenue growth of 30% over the last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. It’s hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.
Has Fuller, Smith & Turner P.L.C. Been A Good Investment?
Since shareholders would have lost about 16% over three years, some Fuller, Smith & Turner P.L.C. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
Remuneration for J. Emeny is close enough to the median pay for a CEO of a similar sized company .
We would like to see somewhat stronger per share growth. And it’s hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. Looking into other areas, we’ve picked out 3 warning signs for Fuller Smith & Turner that investors should think about before committing capital to this stock.
If you want to buy a stock that is better than Fuller Smith & Turner, this free list of high return, low debt companies is a great place to look.
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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