Does AIREA's (LON:AIEA) CEO Salary Compare Well With Industry Peers?

By
Simply Wall St
Published
September 23, 2020
AIM:AIEA

Neil Rylance has been the CEO of AIREA plc (LON:AIEA) since 2008, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for AIREA.

See our latest analysis for AIREA

How Does Total Compensation For Neil Rylance Compare With Other Companies In The Industry?

According to our data, AIREA plc has a market capitalization of UK£10m, and paid its CEO total annual compensation worth UK£276k over the year to December 2019. We note that's a decrease of 19% compared to last year. In particular, the salary of UK£258.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under UK£156m, the reported median total CEO compensation was UK£356k. From this we gather that Neil Rylance is paid around the median for CEOs in the industry.

Component20192018Proportion (2019)
Salary UK£258k UK£251k 93%
Other UK£18k UK£88k 7%
Total CompensationUK£276k UK£339k100%

On an industry level, roughly 44% of total compensation represents salary and 56% is other remuneration. It's interesting to note that AIREA pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
AIM:AIEA CEO Compensation September 23rd 2020

AIREA plc's Growth

Over the last three years, AIREA plc has shrunk its earnings per share by 24% per year. Its revenue is down 8.5% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 AIREA plc Been A Good Investment?

With a three year total loss of 3.7% for the shareholders, AIREA plc would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we noted earlier, AIREA pays its CEO in line with similar-sized companies belonging to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for AIREA that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Promoted
If you decide to trade AIREA, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account.


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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.