This Is Why Silver Bullet Data Services Group PLC's (LON:SBDS) CEO Compensation Looks Appropriate

Key Insights

• Silver Bullet Data Services Group will host its Annual General Meeting on 14th of August
• CEO Ian James' total compensation includes salary of UK£225.0k
• The total compensation is 39% less than the average for the industry
• Silver Bullet Data Services Group's EPS grew by 37% over the past three years while total shareholder loss over the past three years was 67%

Shareholders may be wondering what CEO Ian James plans to do to improve the less than great performance at Silver Bullet Data Services Group PLC (LON:SBDS) recently. At the next AGM coming up on 14th of August, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Silver Bullet Data Services Group

Comparing Silver Bullet Data Services Group PLC's CEO Compensation With The Industry

Our data indicates that Silver Bullet Data Services Group PLC has a market capitalization of UK£14m, and total annual CEO compensation was reported as UK£232k for the year to December 2023. This was the same as last year. In particular, the salary of UK£225.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the British Media industry with market capitalizations under UK£158m, the reported median total CEO compensation was UK£381k. In other words, Silver Bullet Data Services Group pays its CEO lower than the industry median. What's more, Ian James holds UK£355k worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	UK£225k	UK£225k	97%
Other	UK£6.8k	UK£6.8k	3%
Total Compensation	UK£232k	UK£232k	100%

On an industry level, roughly 49% of total compensation represents salary and 51% is other remuneration. Silver Bullet Data Services Group pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Silver Bullet Data Services Group PLC's Growth

Silver Bullet Data Services Group PLC has seen its earnings per share (EPS) increase by 37% a year over the past three years. In the last year, its revenue is up 44%.

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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Silver Bullet Data Services Group PLC Been A Good Investment?

The return of -67% over three years would not have pleased Silver Bullet Data Services Group PLC shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Silver Bullet Data Services Group pays its CEO a majority of compensation through a salary. The fact that shareholders are sitting on a loss is certainly disheartening. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for Silver Bullet Data Services Group (2 are a bit concerning!) that you should be aware of before investing here.

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. 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.

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