The Compensation For Ten Lifestyle Group Plc's (LON:TENG) CEO Looks Deserved And Here's Why

Published
January 28, 2022
AIM:TENG
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We have been pretty impressed with the performance at Ten Lifestyle Group Plc (LON:TENG) recently and CEO Alex Cheatle deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 03 February 2022. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Ten Lifestyle Group

Comparing Ten Lifestyle Group Plc's CEO Compensation With the industry

According to our data, Ten Lifestyle Group Plc has a market capitalization of UK£101m, and paid its CEO total annual compensation worth UK£304k over the year to August 2021. That is, the compensation was roughly the same as last year. In particular, the salary of UK£299.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under UK£149m, the reported median total CEO compensation was UK£322k. From this we gather that Alex Cheatle is paid around the median for CEOs in the industry. Moreover, Alex Cheatle also holds UK£14m worth of Ten Lifestyle Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20212020Proportion (2021)
Salary UK£299k UK£299k 98%
Other UK£5.0k UK£7.0k 2%
Total CompensationUK£304k UK£306k100%

Speaking on an industry level, nearly 46% of total compensation represents salary, while the remainder of 54% is other remuneration. Investors will find it interesting that Ten Lifestyle Group pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
AIM:TENG CEO Compensation January 28th 2022

A Look at Ten Lifestyle Group Plc's Growth Numbers

Ten Lifestyle Group Plc's earnings per share (EPS) grew 11% per year over the last three years. Its revenue is down 24% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Ten Lifestyle Group Plc Been A Good Investment?

We think that the total shareholder return of 194%, over three years, would leave most Ten Lifestyle Group Plc shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Alex receives almost all of their compensation through a salary. Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

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. In our study, we found 2 warning signs for Ten Lifestyle Group you should be aware of, and 1 of them is 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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About AIM:TENG

Ten Lifestyle Group

Ten Lifestyle Group Plc provides concierge services to private banks, retail banks, premium payment card providers, and high-net-worth individuals in Europe, the Middle East, Africa, North and South America, and the Asia-Pacific Region.

Adequate balance sheet and fair value.