Is Fuller Smith & Turner PLC’s (LON:FSTA) CEO Pay Justified?

In 2013 J. Emeny was appointed CEO of Fuller Smith & Turner PLC (LON:FSTA). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Fuller Smith & Turner

How Does J. Emeny’s Compensation Compare With Similar Sized Companies?

According to our data, Fuller Smith & Turner PLC has a market capitalization of UK£502m, and pays its CEO total annual compensation worth UK£1m. That’s less than last year. When we examined a selection of companies with market caps ranging from UK£305m to UK£1.2b, we found the median CEO compensation was UK£414k.

As you can see, J. Emeny is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Fuller Smith & Turner PLC is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

Is Fuller Smith & Turner PLC Growing?

Fuller Smith & Turner PLC has increased its earnings per share (EPS) by an average of 6.2% a year, over the last three years In the last year, its revenue is up 3.0%.

I would argue that the improvement in revenue isn’t particularly impressive, but the modest improvement in EPS is good. Considering these factors I’d say performance has been pretty decent, though not amazing.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Fuller Smith & Turner PLC Been A Good Investment?

Since shareholders would have lost about 15% over three years, some Fuller Smith & Turner PLC shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

We the total CEO remuneration paid by Fuller Smith & Turner PLC, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Fuller Smith & Turner PLC (free visualization of insider trades).

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.