How Much is Quixant's (LON:QXT) CEO Getting Paid?

This article will reflect on the compensation paid to Jon Jayal who has served as CEO of Quixant Plc (LON:QXT) since 2018. This analysis will also assess whether Quixant pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Quixant

How Does Total Compensation For Jon Jayal Compare With Other Companies In The Industry?

According to our data, Quixant Plc has a market capitalization of UK£95m, and paid its CEO total annual compensation worth US$432k over the year to December 2019. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at US$387.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below UK£148m, reported a median total CEO compensation of US$287k. Hence, we can conclude that Jon Jayal is remunerated higher than the industry median. Moreover, Jon Jayal also holds UK£529k worth of Quixant stock directly under their own name.

Speaking on an industry level, nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. Quixant is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Quixant Plc's Growth Numbers

Over the last three years, Quixant Plc has shrunk its earnings per share by 39% per year. It saw its revenue drop 27% over the last 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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Quixant Plc Been A Good Investment?

Given the total shareholder loss of 66% over three years, many shareholders in Quixant Plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, Jon is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. To make matters worse, EPS growth has also been negative during this period. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Quixant 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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