How Much Is Symphony Environmental Technologies plc (LON:SYM) CEO Getting Paid?

The CEO of Symphony Environmental Technologies plc (LON:SYM) is Michael Laurier, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Symphony Environmental Technologies pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Symphony Environmental Technologies

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Comparing Symphony Environmental Technologies plc's CEO Compensation With the industry

Our data indicates that Symphony Environmental Technologies plc has a market capitalization of UK£39m, and total annual CEO compensation was reported as UK£211k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. In particular, the salary of UK£201.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under UK£150m, the reported median total CEO compensation was UK£217k. This suggests that Symphony Environmental Technologies remunerates its CEO largely in line with the industry average. Moreover, Michael Laurier also holds UK£5.0m worth of Symphony Environmental Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20192018Proportion (2019)
SalaryUK£201kUK£200k95%
OtherUK£10kUK£13k5%
Total CompensationUK£211k UK£213k100%

On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. Symphony Environmental Technologies is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
AIM:SYM CEO Compensation November 24th 2020

A Look at Symphony Environmental Technologies plc's Growth Numbers

Over the last three years, Symphony Environmental Technologies plc has shrunk its earnings per share by 114% per year. Its revenue is up 1.3% over the last year.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Symphony Environmental Technologies plc Been A Good Investment?

Most shareholders would probably be pleased with Symphony Environmental Technologies plc for providing a total return of 76% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Symphony Environmental Technologies pays its CEO a majority of compensation through a salary. As we touched on above, Symphony Environmental Technologies plc is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. This isn't great when you look at it against the backdrop of EPS growth, which has been negative for the past three years. But on the bright side, shareholder returns have moved northward during the same period. We do not think CEO compensation is a problem, but shrinking EPS is undoubtedly an issue that will have to be addressed.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 4 warning signs for Symphony Environmental Technologies 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. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

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About AIM:SYM

Symphony Environmental Technologies

Engages in the development and supply of environmental plastic additives and masterbatches.

Slight risk and overvalued.

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