Yahoo Finance How Much Does Stock Spirits Group's (LON:STCK) CEO Make?
This article will reflect on the compensation paid to Mirek Stachowicz who has served as CEO of Stock Spirits Group PLC (LON:STCK) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Stock Spirits Group.
Check out our latest analysis for Stock Spirits Group
Comparing Stock Spirits Group PLC's CEO Compensation With the industry
According to our data, Stock Spirits Group PLC has a market capitalization of UK£527m, and paid its CEO total annual compensation worth €1.8m over the year to September 2020. We note that's a decrease of 12% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €508k.
For comparison, other companies in the same industry with market capitalizations ranging between UK£295m and UK£1.2b had a median total CEO compensation of €817k. Accordingly, our analysis reveals that Stock Spirits Group PLC pays Mirek Stachowicz north of the industry median. Furthermore, Mirek Stachowicz directly owns UK£1.3m worth of shares in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | €508k | €505k | 29% |
Other | €1.2m | €1.5m | 71% |
Total Compensation | €1.8m | €2.0m | 100% |
On an industry level, around 61% of total compensation represents salary and 39% is other remuneration. Stock Spirits Group pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Stock Spirits Group PLC's Growth Numbers
Stock Spirits Group PLC has reduced its earnings per share by 3.1% a year over the last three years. In the last year, its revenue is up 9.1%.
Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Stock Spirits Group PLC Been A Good Investment?
With a total shareholder return of 7.5% over three years, Stock Spirits Group PLC has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
As we touched on above, Stock Spirits Group PLC is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. This doesn't look great when you realize that the company has been suffering from negative EPS growth for the last three years. And shareholder returns are decent but not great. So you can understand why we do not think CEO compensation is particularly modest!
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for Stock Spirits Group that investors should be aware of in a dynamic business environment.
Important note: Stock Spirits Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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