Shareholders May Be A Bit More Conservative With Quadrise Plc's (LON:QED) CEO Compensation For Now

Key Insights

• Quadrise's Annual General Meeting to take place on 27th of November
• Salary of UK£271.0k is part of CEO Jason Miles's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Quadrise's EPS grew by 37% and over the past three years, the total loss to shareholders 34%

The underwhelming share price performance of Quadrise Plc (LON:QED) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 27th of November. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Quadrise

Comparing Quadrise Plc's CEO Compensation With The Industry

Our data indicates that Quadrise Plc has a market capitalization of UK£19m, and total annual CEO compensation was reported as UK£356k for the year to June 2023. We note that's an increase of 19% above last year. Notably, the salary which is UK£271.0k, represents most of the total compensation being paid.

In comparison with other companies in the British Oil and Gas industry with market capitalizations under UK£160m, the reported median total CEO compensation was UK£318k. This suggests that Quadrise remunerates its CEO largely in line with the industry average. Furthermore, Jason Miles directly owns UK£47k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	UK£271k	UK£251k	76%
Other	UK£85k	UK£49k	24%
Total Compensation	UK£356k	UK£300k	100%

On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. There isn't a significant difference between Quadrise and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Quadrise Plc's Growth

Quadrise Plc has seen its earnings per share (EPS) increase by 37% a year over the past three years. In the last year, the company lost virtually all of its revenue.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Quadrise Plc Been A Good Investment?

The return of -34% over three years would not have pleased Quadrise Plc shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their 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 5 warning signs for Quadrise (of which 3 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: Quadrise is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.