Here's What We Learned About The CEO Pay At Alpha FX Group plc (LON:AFX)

The CEO of Alpha FX Group plc (LON:AFX) is Morgan Tillbrook, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Alpha FX Group.

View our latest analysis for Alpha FX Group

Comparing Alpha FX Group plc's CEO Compensation With the industry

Our data indicates that Alpha FX Group plc has a market capitalization of UK£522m, and total annual CEO compensation was reported as UK£403k for the year to December 2019. That's a notable increase of 28% on last year. Notably, the salary which is UK£275.0k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from UK£297m to UK£1.2b, we found that the median CEO total compensation was UK£846k. That is to say, Morgan Tillbrook is paid under the industry median. What's more, Morgan Tillbrook holds UK£124m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2019

2018

Proportion (2019)

Salary

UK£275k

UK£250k

68%

Other

UK£128k

UK£65k

32%

Total Compensation

UK£403k

UK£315k

100%

On an industry level, roughly 49% of total compensation represents salary and 51% is other remuneration. It's interesting to note that Alpha FX Group pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
AIM:AFX CEO Compensation December 6th 2020

Alpha FX Group plc's Growth

Alpha FX Group plc has seen its earnings per share (EPS) increase by 22% a year over the past three years. It achieved revenue growth of 29% 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Alpha FX Group plc Been A Good Investment?

Boasting a total shareholder return of 175% over three years, Alpha FX Group plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.