We Take A Look At Why Shoe Zone plc's (LON:SHOE) CEO Compensation Is Well Earned

In This Article:

Key Insights

  • Shoe Zone to hold its Annual General Meeting on 12th of March

  • Salary of UK£359.3k is part of CEO Anthony Edward Smith's total remuneration

  • Total compensation is similar to the industry average

  • Shoe Zone's total shareholder return over the past three years was 345% while its EPS grew by 87% over the past three years

The performance at Shoe Zone plc (LON:SHOE) has been quite strong recently and CEO Anthony Edward Smith has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 12th of March. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Shoe Zone

How Does Total Compensation For Anthony Edward Smith Compare With Other Companies In The Industry?

Our data indicates that Shoe Zone plc has a market capitalization of UK£120m, and total annual CEO compensation was reported as UK£560k for the year to September 2023. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at UK£359.3k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the British Specialty Retail industry with market capitalizations ranging between UK£79m and UK£315m had a median total CEO compensation of UK£665k. This suggests that Shoe Zone remunerates its CEO largely in line with the industry average. What's more, Anthony Edward Smith holds UK£39m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2023

2022

Proportion (2023)

Salary

UK£359k

UK£350k

64%

Other

UK£201k

UK£199k

36%

Total Compensation

UK£560k

UK£549k

100%

Talking in terms of the industry, salary represented approximately 49% of total compensation out of all the companies we analyzed, while other remuneration made up 51% of the pie. Shoe Zone pays out 64% of remuneration in the form of a salary, significantly higher than the industry average. 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.

ceo-compensation
AIM:SHOE CEO Compensation March 6th 2024

Shoe Zone plc's Growth

Over the past three years, Shoe Zone plc has seen its earnings per share (EPS) grow by 87% per year. In the last year, its revenue is up 6.1%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..