How Is IG Design Group's (LON:IGR) CEO Paid Relative To Peers?

This article will reflect on the compensation paid to Paul Fineman who has served as CEO of IG Design Group plc (LON:IGR) since 2009. 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 IG Design Group

How Does Total Compensation For Paul Fineman Compare With Other Companies In The Industry?

At the time of writing, our data shows that IG Design Group plc has a market capitalization of UK£511m, and reported total annual CEO compensation of US$1.3m for the year to March 2020. Notably, that's a decrease of 52% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$498k.

In comparison with other companies in the industry with market capitalizations ranging from UK£291m to UK£1.2b, the reported median CEO total compensation was US$1.2m. From this we gather that Paul Fineman is paid around the median for CEOs in the industry.

Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. IG Design Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at IG Design Group plc's Growth Numbers

IG Design Group plc has reduced its earnings per share by 11% a year over the last three years. It achieved revenue growth of 26% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has IG Design Group plc Been A Good Investment?

We think that the total shareholder return of 38%, over three years, would leave most IG Design Group plc 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...

As we noted earlier, IG Design Group pays its CEO in line with similar-sized companies belonging to the same industry. The company has logged solid shareholder returns for the past three years. Meanwhile, revenues have been increasing recently On a sour note, EPS growth has been negative. Overall, the company's performance hasn't been that disappointing for us to object the CEO compensation.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 5 warning signs for IG Design Group that you should be aware of before investing.

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.

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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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