Shareholders will probably not be too impressed with the underwhelming results at Synectics plc (LON:SNX) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 27 April 2021. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Synectics

How Does Total Compensation For Paul Webb Compare With Other Companies In The Industry?

At the time of writing, our data shows that Synectics plc has a market capitalization of UK£24m, and reported total annual CEO compensation of UK£274k for the year to November 2020. Notably, that's a decrease of 21% over the year before. We note that the salary portion, which stands at UK£244.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below UK£143m, we found that the median total CEO compensation was UK£207k. Accordingly, our analysis reveals that Synectics plc pays Paul Webb north of the industry median. Moreover, Paul Webb also holds UK£83k worth of Synectics stock directly under their own name.

Speaking on an industry level, nearly 78% of total compensation represents salary, while the remainder of 22% is other remuneration. Synectics is paying a higher share of its remuneration through a salary in comparison to the overall 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.

A Look at Synectics plc's Growth Numbers

Over the last three years, Synectics plc has shrunk its earnings per share by 95% per year. Its revenue is down 35% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Synectics plc Been A Good Investment?

Since shareholders would have lost about 20% over three years, some Synectics plc investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.