A Quick Analysis On Beeks Trading's (LON:BKS) CEO Salary

Gordon McArthur is the CEO of Beeks Trading Corporation Ltd. (LON:BKS), and in this article, we analyze the executive's compensation package 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 Beeks Trading.

View our latest analysis for Beeks Trading

How Does Total Compensation For Gordon McArthur Compare With Other Companies In The Industry?

At the time of writing, our data shows that Beeks Trading Corporation Ltd. has a market capitalization of UK£48m, and reported total annual CEO compensation of UK£62k for the year to June 2020. Notably, that's a decrease of 22% over the year before. In particular, the salary of UK£60.0k, 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£151m, the reported median total CEO compensation was UK£253k. This suggests that Gordon McArthur is paid below the industry median. What's more, Gordon McArthur holds UK£25m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 69% of total compensation out of all the companies we analyzed, while other remuneration made up 31% of the pie. Beeks Trading pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Beeks Trading Corporation Ltd.'s Growth Numbers

Over the past three years, Beeks Trading Corporation Ltd. has seen its earnings per share (EPS) grow by 130% per year. Its revenue is up 27% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Beeks Trading Corporation Ltd. Been A Good Investment?

We think that the total shareholder return of 108%, over three years, would leave most Beeks Trading Corporation Ltd. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Beeks Trading pays its CEO a majority of compensation through a salary. As previously discussed, Gordon is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Gordon's performance.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Beeks Trading that you should be aware of before investing.

Important note: Beeks Trading is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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