It Looks Like Quixant Plc's (LON:QXT) CEO May Expect Their Salary To Be Put Under The Microscope

Shareholders will probably not be too impressed with the underwhelming results at Quixant Plc (LON:QXT) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 06 May 2021. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Quixant

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

At the time of writing, our data shows that Quixant Plc has a market capitalization of UK£96m, and reported total annual CEO compensation of US$379k for the year to December 2020. Notably, that's a decrease of 12% over the year before. Notably, the salary which is US$366.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under UK£144m, the reported median total CEO compensation was US$332k. This suggests that Quixant remunerates its CEO largely in line with the industry average. Furthermore, Jon Jayal directly owns UK£550k worth of shares in the company.

Component	2020	2019	Proportion (2020)
Salary	US$366k	US$387k	97%
Other	US$13k	US$45k	3%
Total Compensation	US$379k	US$432k	100%

Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. Quixant pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Quixant Plc's Growth

Over the last three years, Quixant Plc has shrunk its earnings per share by 55% per year. In the last year, its revenue is down 31%.

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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Quixant Plc Been A Good Investment?

The return of -65% over three years would not have pleased Quixant Plc shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Quixant pays its CEO a majority of compensation through a salary. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Quixant that investors should think about before committing capital to this stock.

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.

When trading Quixant or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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 (at) simplywallst.com.