Alan Hudson is the CEO of AFH Financial Group Plc (LON:AFHP). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for AFH Financial Group
How Does Alan Hudson's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that AFH Financial Group Plc has a market cap of UK£125m, and reported total annual CEO compensation of UK£710k for the year to October 2019. We think total compensation is more important but we note that the CEO salary is lower, at UK£550k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£83m to UK£330m. The median total CEO compensation was UK£621k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of AFH Financial Group. Speaking on an industry level, we can see that nearly 68% of total compensation represents salary, while the remainder of 32% is other remuneration. AFH Financial Group does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
So Alan Hudson is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see a visual representation of the CEO compensation at AFH Financial Group, below.
Is AFH Financial Group Plc Growing?
Over the last three years AFH Financial Group Plc has seen earnings per share (EPS) move in a positive direction by an average of 41% per year (using a line of best fit). It achieved revenue growth of 47% over the last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has AFH Financial Group Plc Been A Good Investment?
Boasting a total shareholder return of 58% over three years, AFH Financial Group Plc has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Alan Hudson is paid around what is normal for the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Shifting gears from CEO pay for a second, we've picked out 2 warning signs for AFH Financial Group that investors should be aware of in a dynamic business environment.
If you want to buy a stock that is better than AFH Financial Group, this free list of high return, low debt companies is a great place to look.
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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. Thank you for reading.