Shareholders May Not Be So Generous With Field Solutions Holdings Limited's (ASX:FSG) CEO Compensation And Here's Why

Performance at Field Solutions Holdings Limited (ASX:FSG) has been reasonably good and CEO Andrew Roberts has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28 November 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out the opportunities and risks within the AU Telecom industry.

How Does Total Compensation For Andrew Roberts Compare With Other Companies In The Industry?

At the time of writing, our data shows that Field Solutions Holdings Limited has a market capitalization of AU$84m, and reported total annual CEO compensation of AU$706k for the year to June 2022. We note that's an increase of 48% above last year. In particular, the salary of AU$390.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$299m, we found that the median total CEO compensation was AU$498k. Accordingly, our analysis reveals that Field Solutions Holdings Limited pays Andrew Roberts north of the industry median. Moreover, Andrew Roberts also holds AU$337k worth of Field Solutions Holdings stock directly under their own name.

Component	2022	2021	Proportion (2022)
Salary	AU$390k	AU$295k	55%
Other	AU$316k	AU$183k	45%
Total Compensation	AU$706k	AU$478k	100%

Talking in terms of the industry, salary represented approximately 46% of total compensation out of all the companies we analyzed, while other remuneration made up 54% of the pie. Field Solutions Holdings pays out 55% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Field Solutions Holdings Limited's Growth Numbers

Over the past three years, Field Solutions Holdings Limited has seen its earnings per share (EPS) grow by 98% per year. Its revenue is up 127% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Field Solutions Holdings Limited Been A Good Investment?

We think that the total shareholder return of 323%, over three years, would leave most Field Solutions Holdings Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 5 warning signs for Field Solutions Holdings (1 shouldn't be ignored!) 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.