Stock Analysis

How Much Is QUIZ plc (LON:QUIZ) Paying Its CEO?

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

See our latest analysis for QUIZ

Comparing QUIZ plc's CEO Compensation With the industry

According to our data, QUIZ plc has a market capitalization of UK£12m, and paid its CEO total annual compensation worth UK£218k over the year to March 2020. That is, the compensation was roughly the same as last year. Notably, the salary which is UK£180.0k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below UK£143m, reported a median total CEO compensation of UK£384k. Accordingly, QUIZ pays its CEO under the industry median.

Component20202019Proportion (2020)
Salary UK£180k UK£180k 83%
Other UK£38k UK£37k 17%
Total CompensationUK£218k UK£217k100%

On an industry level, around 76% of total compensation represents salary and 24% is other remuneration. There isn't a significant difference between QUIZ and the broader market, in terms of salary allocation in the overall compensation package. 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.

ceo-compensation
AIM:QUIZ CEO Compensation February 22nd 2021

A Look at QUIZ plc's Growth Numbers

Over the last three years, QUIZ plc has shrunk its earnings per share by 111% per year. Its revenue is down 43% over the previous year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. 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 QUIZ plc Been A Good Investment?

Given the total shareholder loss of 93% over three years, many shareholders in QUIZ plc are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we noted earlier, QUIZ 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 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for QUIZ (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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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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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