Yahoo Finance Is Laura Ashley Holdings plc’s (LON:ALY) CEO Incentives Align With Yours?
In 2012 Kwan Ng was appointed CEO of Laura Ashley Holdings plc (LON:ALY). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Laura Ashley Holdings
How Does Kwan Ng’s Compensation Compare With Similar Sized Companies?
Our data indicates that Laura Ashley Holdings plc is worth UK£29m, and total annual CEO compensation is UK£250k. We looked at a group of companies with market capitalizations under UK£154m, and the median CEO compensation was UK£244k.
So Kwan Ng is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Laura Ashley Holdings has changed over time.
Is Laura Ashley Holdings plc Growing?
Laura Ashley Holdings plc has reduced its earnings per share by an average of 89% a year, over the last three years. In the last year, its revenue is down -7.1%.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Laura Ashley Holdings plc Been A Good Investment?
Given the total loss of 85% over three years, many shareholders in Laura Ashley Holdings plc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Remuneration for Kwan Ng is close enough to the median pay for a CEO of a similar sized company .
After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don’t think the CEO is underpaid! So you may want to check if insiders are buying Laura Ashley Holdings plc shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
