Shareholders Will Probably Not Have Any Issues With FW Thorpe Plc's (LON:TFW) CEO Compensation

Key Insights

• FW Thorpe to hold its Annual General Meeting on 16th of November
• Salary of UK£274.0k is part of CEO Mike Allcock's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, FW Thorpe's EPS grew by 18% and over the past three years, the total shareholder return was 16%

CEO Mike Allcock has done a decent job of delivering relatively good performance at FW Thorpe Plc (LON:TFW) recently. As shareholders go into the upcoming AGM on 16th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

View our latest analysis for FW Thorpe

Comparing FW Thorpe Plc's CEO Compensation With The Industry

At the time of writing, our data shows that FW Thorpe Plc has a market capitalization of UK£416m, and reported total annual CEO compensation of UK£644k for the year to June 2023. We note that's an increase of 18% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£274k.

For comparison, other companies in the British Electrical industry with market capitalizations ranging between UK£163m and UK£652m had a median total CEO compensation of UK£728k. This suggests that FW Thorpe remunerates its CEO largely in line with the industry average. Furthermore, Mike Allcock directly owns UK£786k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	UK£274k	UK£234k	43%
Other	UK£370k	UK£313k	57%
Total Compensation	UK£644k	UK£547k	100%

Talking in terms of the industry, salary represented approximately 64% of total compensation out of all the companies we analyzed, while other remuneration made up 36% of the pie. FW Thorpe sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

FW Thorpe Plc's Growth

Over the past three years, FW Thorpe Plc has seen its earnings per share (EPS) grow by 18% per year. It achieved revenue growth of 23% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has FW Thorpe Plc Been A Good Investment?

FW Thorpe Plc has served shareholders reasonably well, with a total return of 16% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at FW Thorpe.

Switching gears from FW Thorpe, 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.