What Can We Conclude About Alpha FX Group's (LON:AFX) CEO Pay?

The CEO of Alpha FX Group plc (LON:AFX) is Morgan Tillbrook, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Alpha FX Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Alpha FX Group

Comparing Alpha FX Group plc's CEO Compensation With the industry

Our data indicates that Alpha FX Group plc has a market capitalization of UK£483m, and total annual CEO compensation was reported as UK£403k for the year to December 2019. We note that's an increase of 28% above last year. In particular, the salary of UK£275.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations ranging from UK£300m to UK£1.2b, the reported median CEO total compensation was UK£759k. That is to say, Morgan Tillbrook is paid under the industry median. What's more, Morgan Tillbrook holds UK£115m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 49% of total compensation out of all the companies we analyzed, while other remuneration made up 51% of the pie. Alpha FX Group pays out 68% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Alpha FX Group plc's Growth

Over the past three years, Alpha FX Group plc has seen its earnings per share (EPS) grow by 22% per year. In the last year, its revenue is up 29%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Alpha FX Group plc Been A Good Investment?

Boasting a total shareholder return of 132% over three years, Alpha FX Group plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As previously discussed, Morgan is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. And given most shareholders are probably very happy with recent shareholder returns, they might even think Morgan deserves a raise!

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Alpha FX Group that investors should think about before committing capital to this stock.

Switching gears from Alpha FX Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

If you’re looking to trade Alpha FX Group, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade 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@simplywallst.com.