Yahoo Finance We Think The Compensation For Tracsis plc's (LON:TRCS) CEO Looks About Right
Performance at Tracsis plc (LON:TRCS) has been reasonably good and CEO Chris Barnes has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 18 January 2023. We present our case of why we think CEO compensation looks fair.
Check out our latest analysis for Tracsis
Comparing Tracsis plc's CEO Compensation With The Industry
According to our data, Tracsis plc has a market capitalization of UK£282m, and paid its CEO total annual compensation worth UK£504k over the year to July 2022. We note that's an increase of 29% above last year. In particular, the salary of UK£282.0k, makes up a fairly large portion of the total compensation being paid to the CEO.
In comparison with other companies in the British Software industry with market capitalizations ranging from UK£165m to UK£658m, the reported median CEO total compensation was UK£626k. This suggests that Tracsis remunerates its CEO largely in line with the industry average. What's more, Chris Barnes holds UK£105k worth of shares in the company in their own name.
Component | 2022 | 2021 | Proportion (2022) |
Salary | UK£282k | UK£282k | 56% |
Other | UK£222k | UK£110k | 44% |
Total Compensation | UK£504k | UK£392k | 100% |
Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. In Tracsis' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Tracsis plc's Growth
Over the last three years, Tracsis plc has shrunk its earnings per share by 34% per year. In the last year, its revenue is up 37%.
The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Tracsis plc Been A Good Investment?
Tracsis plc has served shareholders reasonably well, with a total return of 30% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Still, we think that until shareholders see an improvement in EPS growth, they may find it hard to justify a pay rise for the CEO.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Tracsis that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
