What Does Quartix Holdings' (LON:QTX) CEO Pay Reveal?

Andy Walters is the CEO of Quartix Holdings plc (LON:QTX), 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 Quartix Holdings.

Check out our latest analysis for Quartix Holdings

How Does Total Compensation For Andy Walters Compare With Other Companies In The Industry?

Our data indicates that Quartix Holdings plc has a market capitalization of UK£176m, and total annual CEO compensation was reported as UK£91k for the year to December 2019. That's a modest increase of 4.5% on the prior year. Notably, the salary of UK£91k is the entirety of the CEO compensation.

On examining similar-sized companies in the industry with market capitalizations between UK£76m and UK£303m, we discovered that the median CEO total compensation of that group was UK£395k. In other words, Quartix Holdings pays its CEO lower than the industry median. Moreover, Andy Walters also holds UK£37m worth of Quartix Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 68% of total compensation out of all the companies we analyzed, while other remuneration made up 32% of the pie. Speaking on a company level, Quartix Holdings prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Quartix Holdings plc's Growth

Over the last three years, Quartix Holdings plc has shrunk its earnings per share by 2.5% per year. In the last year, its revenue is up 3.2%.

A lack of EPS improvement is not good to see. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Quartix Holdings plc Been A Good Investment?

Quartix Holdings plc has served shareholders reasonably well, with a total return of 12% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Quartix Holdings rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Andy is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. While we have not been overly impressed by shareholder returns, EPS growth has been negative over the last three years, a real headache for the company. We can't categorize CEO compensation as high, but shareholders might object to a raise at this stage, considering overall poor performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Quartix Holdings you should be aware of, and 1 of them is a bit concerning.

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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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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