David Cicurel is the CEO of Judges Scientific plc (LON:JDG), and in this article, we analyze the executive's compensation package 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.
View our latest analysis for Judges Scientific
Comparing Judges Scientific plc's CEO Compensation With the industry
Our data indicates that Judges Scientific plc has a market capitalization of UK£370m, and total annual CEO compensation was reported as UK£243k for the year to December 2019. We note that's an increase of 11% above last year. In particular, the salary of UK£190.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar companies from the same industry with market caps ranging from UK£150m to UK£599m, we found that the median CEO total compensation was UK£380k. That is to say, David Cicurel is paid under the industry median. What's more, David Cicurel holds UK£44m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | UK£190k | UK£170k | 78% |
| Other | UK£53k | UK£48k | 22% |
| Total Compensation | UK£243k | UK£218k | 100% |
On an industry level, roughly 48% of total compensation represents salary and 52% is other remuneration. Judges Scientific is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Judges Scientific plc's Growth
Judges Scientific plc's earnings per share (EPS) grew 54% per year over the last three years. Its revenue is down 1.6% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Judges Scientific plc Been A Good Investment?
Most shareholders would probably be pleased with Judges Scientific plc for providing a total return of 219% over three years. 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.
In Summary...
As previously discussed, David is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with David's performance.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Judges Scientific that investors should be aware of in a dynamic business environment.
Important note: Judges Scientific is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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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About AIM:JDG
Judges Scientific
Designs, manufactures, and sells scientific instruments.
High growth potential with proven track record and pays a dividend.
