Fiske plc's (LON:FKE) CEO Will Probably Find It Hard To See A Huge Raise This Year

In the past three years, the share price of Fiske plc (LON:FKE) has struggled to generate growth for its shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 22 October 2021. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Fiske

Comparing Fiske plc's CEO Compensation With the industry

At the time of writing, our data shows that Fiske plc has a market capitalization of UK£8.9m, and reported total annual CEO compensation of UK£191k for the year to May 2021. We note that's an increase of 13% above last year. We note that the salary portion, which stands at UK£180.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below UK£145m, reported a median total CEO compensation of UK£179k. This suggests that Fiske remunerates its CEO largely in line with the industry average. What's more, James Philip Harrison holds UK£134k worth of shares in the company in their own name.

Component	2021	2020	Proportion (2021)
Salary	UK£180k	UK£158k	94%
Other	UK£11k	UK£11k	6%
Total Compensation	UK£191k	UK£169k	100%

On an industry level, around 47% of total compensation represents salary and 53% is other remuneration. It's interesting to note that Fiske pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Fiske plc's Growth Numbers

Fiske plc has seen its earnings per share (EPS) increase by 4.4% a year over the past three years. Its revenue is up 14% over the last year.

We think the revenue growth is good. And, while modest, the EPS growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Fiske plc Been A Good Investment?

Since shareholders would have lost about 9.1% over three years, some Fiske plc investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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 1 warning sign for Fiske that you should be aware of before investing.

Switching gears from Fiske, 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.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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