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The CEO of Frenkel Topping Group Plc (LON:FEN) is Richard Fraser, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Frenkel Topping Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Frenkel Topping Group
How Does Total Compensation For Richard Fraser Compare With Other Companies In The Industry?
At the time of writing, our data shows that Frenkel Topping Group Plc has a market capitalization of UK£43m, and reported total annual CEO compensation of UK£235k for the year to December 2019. That's a fairly small increase of 7.8% over the previous year. We note that the salary portion, which stands at UK£210.2k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under UK£148m, the reported median total CEO compensation was UK£238k. From this we gather that Richard Fraser is paid around the median for CEOs in the industry. Furthermore, Richard Fraser directly owns UK£866k worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | UK£210k | UK£218k | 89% |
| Other | UK£25k | - | 11% |
| Total Compensation | UK£235k | UK£218k | 100% |
On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. Frenkel Topping Group pays out 89% 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.
Frenkel Topping Group Plc's Growth
Over the last three years, Frenkel Topping Group Plc has shrunk its earnings per share by 16% per year. In the last year, its revenue is up 10%.
The decline in EPS is a bit concerning. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Frenkel Topping Group Plc Been A Good Investment?
Since shareholders would have lost about 14% over three years, some Frenkel Topping Group Plc investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.