1Spatial Plc's (LON:SPA) CEO Compensation Looks Acceptable To Us And Here's Why

Despite 1Spatial Plc's (LON:SPA) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. Some of these issues will occupy shareholders' minds as the AGM rolls around on 23 June 2021. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

Check out our latest analysis for 1Spatial

How Does Total Compensation For Claire Milverton-Clark Compare With Other Companies In The Industry?

According to our data, 1Spatial Plc has a market capitalization of UK£47m, and paid its CEO total annual compensation worth UK£275k over the year to January 2021. That's a notable increase of 13% on last year. We note that the salary portion, which stands at UK£253.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below UK£142m, reported a median total CEO compensation of UK£239k. From this we gather that Claire Milverton-Clark is paid around the median for CEOs in the industry. What's more, Claire Milverton-Clark holds UK£233k worth of shares in the company in their own name.

Component	2021	2020	Proportion (2021)
Salary	UK£253k	UK£222k	92%
Other	UK£22k	UK£21k	8%
Total Compensation	UK£275k	UK£243k	100%

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. It's interesting to note that 1Spatial pays out a greater portion of remuneration through salary, compared to the industry. 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.

1Spatial Plc's Growth

Over the last three years, 1Spatial Plc has shrunk its earnings per share by 5.7% per year. In the last year, its revenue is up 5.2%.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has 1Spatial Plc Been A Good Investment?

1Spatial Plc has generated a total shareholder return of 6.3% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for 1Spatial that investors should look into moving forward.

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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