Richard Whiting is the CEO of NWF Group plc (LON:NWF), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for NWF Group
How Does Total Compensation For Richard Whiting Compare With Other Companies In The Industry?
Our data indicates that NWF Group plc has a market capitalization of UK£100m, and total annual CEO compensation was reported as UK£1.0m for the year to May 2020. We note that's an increase of 69% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£297k.
On comparing similar-sized companies in the industry with market capitalizations below UK£148m, we found that the median total CEO compensation was UK£282k. Hence, we can conclude that Richard Whiting is remunerated higher than the industry median. Moreover, Richard Whiting also holds UK£846k worth of NWF Group stock directly under their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | UK£297k | UK£290k | 29% |
| Other | UK£726k | UK£315k | 71% |
| Total Compensation | UK£1.0m | UK£605k | 100% |
On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. NWF Group pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
NWF Group plc's Growth
Over the past three years, NWF Group plc has seen its earnings per share (EPS) grow by 17% per year. Its revenue is up 2.4% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has NWF Group plc Been A Good Investment?
Boasting a total shareholder return of 40% over three years, NWF 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.
To Conclude...
As we touched on above, NWF Group plc is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But EPS growth and shareholder returns have been top-notch for the past three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. And given most shareholders are probably very happy with recent returns, they might even think that Richard deserves a raise!
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for NWF Group 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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Access Free AnalysisThis 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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About AIM:NWF
NWF Group
Primarily engages in the sale and distribution of fuel oils in the United Kingdom.
Flawless balance sheet, undervalued and pays a dividend.
