How Much Is Victrex plc (LON:VCT) CEO Getting Paid?

Jakob Sigurdsson became the CEO of Victrex plc (LON:VCT) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Victrex.

View our latest analysis for Victrex

Comparing Victrex plc's CEO Compensation With the industry

According to our data, Victrex plc has a market capitalization of UK£2.1b, and paid its CEO total annual compensation worth UK£880k over the year to September 2020. Notably, that's an increase of 15% over the year before. Notably, the salary which is UK£557.5k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from UK£1.5b to UK£4.7b, the reported median CEO total compensation was UK£889k. So it looks like Victrex compensates Jakob Sigurdsson in line with the median for the industry. Furthermore, Jakob Sigurdsson directly owns UK£319k worth of shares in the company.

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. There isn't a significant difference between Victrex and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Victrex plc's Growth Numbers

Over the last three years, Victrex plc has shrunk its earnings per share by 19% per year. It saw its revenue drop 9.5% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Victrex plc Been A Good Investment?

With a total shareholder return of 9.6% over three years, Victrex plc has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

As we touched on above, Victrex 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. According to our analysis, Victrex is suffering from uninspiring EPS growth, and even though shareholder returns are stable, they are hardly impressive. These figures do not go well against CEO compensation, which is more or less equal to the industry median. We would stop short of the compensation is inappropriate, but we can't say the executive is underpaid.

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've identified 2 warning signs for Victrex that investors should be aware of in a dynamic business environment.

Switching gears from Victrex, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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