How Much Is Trakm8 Holdings PLC (LON:TRAK) CEO Getting Paid?

The CEO of Trakm8 Holdings PLC (LON:TRAK) is John Watkins, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Trakm8 Holdings

How Does Total Compensation For John Watkins Compare With Other Companies In The Industry?

Our data indicates that Trakm8 Holdings PLC has a market capitalization of UK£7.4m, and total annual CEO compensation was reported as UK£289k for the year to March 2020. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth UK£289k.

In comparison with other companies in the industry with market capitalizations under UK£142m, the reported median total CEO compensation was UK£207k. This suggests that John Watkins is paid more than the median for the industry. Moreover, John Watkins also holds UK£1.1m worth of Trakm8 Holdings stock directly under their own name.

On an industry level, around 88% of total compensation represents salary and 12% is other remuneration. On a company level, Trakm8 Holdings prefers to reward its CEO through a salary, opting not to pay John Watkins through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Trakm8 Holdings PLC's Growth Numbers

Over the last three years, Trakm8 Holdings PLC has shrunk its earnings per share by 50% per year. Its revenue is down 6.1% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Trakm8 Holdings PLC Been A Good Investment?

Since shareholders would have lost about 85% over three years, some Trakm8 Holdings PLC investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Trakm8 Holdings pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, John is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. To make matters worse, EPS growth has also been negative during this period. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

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. That's why we did our research, and identified 3 warning signs for Trakm8 Holdings (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Trakm8 Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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