John Duffy has been the CEO of Finsbury Food Group Plc (LON:FIF) since 2009, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Finsbury Food Group
Comparing Finsbury Food Group Plc's CEO Compensation With the industry
According to our data, Finsbury Food Group Plc has a market capitalization of UK£91m, and paid its CEO total annual compensation worth UK£406k over the year to June 2020. That's a slight decrease of 6.0% on the prior year. We note that the salary portion, which stands at UK£394.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below UK£150m, reported a median total CEO compensation of UK£281k. Hence, we can conclude that John Duffy is remunerated higher than the industry median. Moreover, John Duffy also holds UK£1.9m worth of Finsbury Food Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | UK£394k | UK£420k | 97% |
| Other | UK£12k | UK£12k | 3% |
| Total Compensation | UK£406k | UK£432k | 100% |
On an industry level, roughly 71% of total compensation represents salary and 29% is other remuneration. Finsbury Food Group is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Finsbury Food Group Plc's Growth
Finsbury Food Group Plc's earnings per share (EPS) grew 6.0% per year over the last three years. It saw its revenue drop 2.8% over the last year.
We would prefer it if there was revenue growth, but the modest EPSgrowth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Finsbury Food Group Plc Been A Good Investment?
Since shareholders would have lost about 27% over three years, some Finsbury Food Group Plc investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.