Here's Why Access Intelligence Plc's (LON:ACC) CEO May Deserve A Raise

By
Simply Wall St
Published
May 06, 2021
AIM:ACC
Source: Shutterstock

Shareholders will be pleased by the impressive results for Access Intelligence Plc (LON:ACC) recently and CEO Marguarite Arnold has played a key role. This would be kept in mind at the upcoming AGM on 13 May 2021 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

View our latest analysis for Access Intelligence

How Does Total Compensation For Marguarite Arnold Compare With Other Companies In The Industry?

According to our data, Access Intelligence Plc has a market capitalization of UK£111m, and paid its CEO total annual compensation worth UK£260k over the year to November 2020. That's a slight decrease of 3.8% on the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth UK£260k.

In comparison with other companies in the industry with market capitalizations ranging from UK£72m to UK£288m, the reported median CEO total compensation was UK£395k. That is to say, Marguarite Arnold is paid under the industry median. What's more, Marguarite Arnold holds UK£979k worth of shares in the company in their own name.

Component20202019Proportion (2020)
Salary UK£260k UK£270k 100%
Other - - -
Total CompensationUK£260k UK£270k100%

On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. At the company level, Access Intelligence pays Marguarite Arnold solely through a salary, preferring to go down a conventional route. 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:ACC CEO Compensation May 7th 2021

Access Intelligence Plc's Growth

Over the past three years, Access Intelligence Plc has seen its earnings per share (EPS) grow by 17% per year. In the last year, its revenue is up 42%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Access Intelligence Plc Been A Good Investment?

Boasting a total shareholder return of 214% over three years, Access Intelligence Plc has done well by shareholders. 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...

Access Intelligence pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Access Intelligence that investors should think about before committing capital to this 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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