Key Things To Understand About Field Solutions Holdings' (ASX:FSG) CEO Pay Cheque

The CEO of Field Solutions Holdings Limited (ASX:FSG) is Andrew Roberts, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Field Solutions Holdings

Comparing Field Solutions Holdings Limited's CEO Compensation With the industry

At the time of writing, our data shows that Field Solutions Holdings Limited has a market capitalization of AU$26m, and reported total annual CEO compensation of AU$347k for the year to June 2020. Notably, that's an increase of 10.0% over the year before. In particular, the salary of AU$295.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$257m, we found that the median total CEO compensation was AU$335k. So it looks like Field Solutions Holdings compensates Andrew Roberts in line with the median for the industry. Moreover, Andrew Roberts also holds AU$166k worth of Field Solutions Holdings stock directly under their own name.

On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. According to our research, Field Solutions Holdings has allocated a higher percentage of pay to salary in comparison to the wider industry. 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.

Field Solutions Holdings Limited's Growth

Field Solutions Holdings Limited has seen its earnings per share (EPS) increase by 96% a year over the past three years. Its revenue is up 21% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Field Solutions Holdings Limited Been A Good Investment?

We think that the total shareholder return of 60%, over three years, would leave most Field Solutions Holdings Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As we touched on above, Field Solutions Holdings Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Indeed, many might consider that Andrew is compensated rather modestly, given the solid company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Field Solutions Holdings (1 is significant!) that you should be aware of before investing here.

Switching gears from Field Solutions Holdings, 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.

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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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