What Can We Conclude About H C Slingsby's (LON:SLNG) CEO Pay?

This article will reflect on the compensation paid to Morgan Morris who has served as CEO of H C Slingsby plc (LON:SLNG) since 2018. 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 H C Slingsby

Comparing H C Slingsby plc's CEO Compensation With the industry

According to our data, H C Slingsby plc has a market capitalization of UK£2.6m, and paid its CEO total annual compensation worth UK£108k over the year to December 2019. That's a notable increase of 49% on last year. In particular, the salary of UK£105.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below UK£155m, reported a median total CEO compensation of UK£229k. This suggests that Morgan Morris is paid below the industry median. Furthermore, Morgan Morris directly owns UK£134k worth of shares in the company.

Talking in terms of the industry, salary represented approximately 46% of total compensation out of all the companies we analyzed, while other remuneration made up 54% of the pie. H C Slingsby 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 total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at H C Slingsby plc's Growth Numbers

H C Slingsby plc's earnings per share (EPS) grew 98% per year over the last three years. In the last year, its revenue changed by just 0.2%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has H C Slingsby plc Been A Good Investment?

We think that the total shareholder return of 122%, over three years, would leave most H C Slingsby plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

H C Slingsby pays its CEO a majority of compensation through a salary. As we touched on above, H C Slingsby plc is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Considering robust EPS growth, we believe Morgan to be modestly paid. Given the strong history of shareholder returns, the shareholders are probably very happy with Morgan's performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 5 warning signs (and 1 which is a bit unpleasant) in H C Slingsby we think you should know about.

Switching gears from H C Slingsby, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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