Here's What We Think About N4 Pharma's (LON:N4P) CEO Pay

Nigel Theobald has been the CEO of N4 Pharma Plc (LON:N4P) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for N4 Pharma.

Check out our latest analysis for N4 Pharma

How Does Total Compensation For Nigel Theobald Compare With Other Companies In The Industry?

According to our data, N4 Pharma Plc has a market capitalization of UK£17m, and paid its CEO total annual compensation worth UK£72k over the year to December 2020. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth UK£72k.

For comparison, other companies in the industry with market capitalizations below UK£144m, reported a median total CEO compensation of UK£238k. This suggests that Nigel Theobald is paid below the industry median. Moreover, Nigel Theobald also holds UK£1.6m worth of N4 Pharma stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 47% of total compensation represents salary and 53% is other remuneration. At the company level, N4 Pharma pays Nigel Theobald solely through a salary, preferring to go down a conventional route. 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.

A Look at N4 Pharma Plc's Growth Numbers

Over the last three years, N4 Pharma Plc has shrunk its earnings per share by 7.4% per year. Its revenue is down 89% over the previous year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 N4 Pharma Plc Been A Good Investment?

Given the total shareholder loss of 67% over three years, many shareholders in N4 Pharma Plc are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

N4 Pharma rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, N4 Pharma Plc is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 5 warning signs for N4 Pharma you should be aware of, and 3 of them are potentially serious.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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