Why We Think The CEO Of Fonix Mobile plc (LON:FNX) May Soon See A Pay Rise

Key Insights

• Fonix Mobile will host its Annual General Meeting on 14th of November
• Total pay for CEO Rob Weisz includes UK£176.0k salary
• The overall pay is 76% below the industry average
• Fonix Mobile's EPS grew by 13% over the past three years while total shareholder return over the past three years was 124%

The solid performance at Fonix Mobile plc (LON:FNX) has been impressive and shareholders will probably be pleased to know that CEO Rob Weisz has delivered. At the upcoming AGM on 14th of November, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for Fonix Mobile

How Does Total Compensation For Rob Weisz Compare With Other Companies In The Industry?

According to our data, Fonix Mobile plc has a market capitalization of UK£193m, and paid its CEO total annual compensation worth UK£176k over the year to June 2023. That's mostly flat as compared to the prior year's compensation. Notably, the salary of UK£176k is the entirety of the CEO compensation.

On comparing similar companies from the British Diversified Financial industry with market caps ranging from UK£81m to UK£325m, we found that the median CEO total compensation was UK£748k. In other words, Fonix Mobile pays its CEO lower than the industry median. What's more, Rob Weisz holds UK£14m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	UK£176k	UK£174k	100%
Other	-	-	-
Total Compensation	UK£176k	UK£174k	100%

On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. Speaking on a company level, Fonix Mobile prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Fonix Mobile plc's Growth

Over the past three years, Fonix Mobile plc has seen its earnings per share (EPS) grow by 13% per year. Its revenue is up 21% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Fonix Mobile plc Been A Good Investment?

Most shareholders would probably be pleased with Fonix Mobile plc for providing a total return of 124% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Fonix Mobile pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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. We did our research and spotted 1 warning sign for Fonix Mobile that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.