Stock Analysis

How Much is Wynnstay Properties' (LON:WSP) CEO Getting Paid?

AIM:WSP
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Christopher Williams became the CEO of Wynnstay Properties Plc (LON:WSP) in 2006, 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 Wynnstay Properties.

See our latest analysis for Wynnstay Properties

How Does Total Compensation For Christopher Williams Compare With Other Companies In The Industry?

At the time of writing, our data shows that Wynnstay Properties Plc has a market capitalization of UK£15m, and reported total annual CEO compensation of UK£160k for the year to March 2020. That's a notable decrease of 13% on last year. Notably, the salary which is UK£129.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below UK£145m, we found that the median total CEO compensation was UK£321k. This suggests that Christopher Williams is paid below the industry median. Furthermore, Christopher Williams directly owns UK£66k worth of shares in the company.

Component20202019Proportion (2020)
Salary UK£129k UK£151k 81%
Other UK£31k UK£33k 19%
Total CompensationUK£160k UK£184k100%

Speaking on an industry level, nearly 51% of total compensation represents salary, while the remainder of 49% is other remuneration. Wynnstay Properties is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
AIM:WSP CEO Compensation February 9th 2021

Wynnstay Properties Plc's Growth

Wynnstay Properties Plc has reduced its earnings per share by 58% a year over the last three years. It saw its revenue drop 8.5% over the last year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Wynnstay Properties Plc Been A Good Investment?

Wynnstay Properties Plc has not done too badly by shareholders, with a total return of 9.6%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As we noted earlier, Wynnstay Properties pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Over the last three years, shareholder returns have been unexciting, and EPS growth has fared even worse. So, although we can't say CEO compensation is very high, shareholders might want to see an improvement in overall performance before agreeing that Christopher deserves a bump.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 5 warning signs for Wynnstay Properties (of which 2 make us uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

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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