We Take A Look At Whether Jarvis Securities plc's (LON:JIM) CEO May Be Underpaid

The impressive results at Jarvis Securities plc (LON:JIM) recently will be great news for shareholders. At the upcoming AGM on 22 April 2021, 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.

See our latest analysis for Jarvis Securities

How Does Total Compensation For Andrew Grant Compare With Other Companies In The Industry?

At the time of writing, our data shows that Jarvis Securities plc has a market capitalization of UK£129m, and reported total annual CEO compensation of UK£323k for the year to December 2020. That's a notable decrease of 8.7% on last year. Notably, the salary of UK£323k is the entirety of the CEO compensation.

On comparing similar companies from the same industry with market caps ranging from UK£73m to UK£290m, we found that the median CEO total compensation was UK£466k. That is to say, Andrew Grant is paid under the industry median. Furthermore, Andrew Grant directly owns UK£51m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	UK£323k	UK£354k	100%
Other	-	-	-
Total Compensation	UK£323k	UK£354k	100%

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. Speaking on a company level, Jarvis Securities 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.

Jarvis Securities plc's Growth

Over the past three years, Jarvis Securities plc has seen its earnings per share (EPS) grow by 16% per year. In the last year, its revenue is up 27%.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Jarvis Securities plc Been A Good Investment?

Most shareholders would probably be pleased with Jarvis Securities plc for providing a total return of 191% 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...

Jarvis Securities 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. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Jarvis Securities (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.
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