Is AFH Financial Group Plc's (LON:AFHP) CEO Paid At A Competitive Rate?

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Alan Hudson is the CEO of AFH Financial Group Plc (LON:AFHP). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for AFH Financial Group

How Does Alan Hudson's Compensation Compare With Similar Sized Companies?

Our data indicates that AFH Financial Group Plc is worth UK£151m, and total annual CEO compensation is UK£659k. (This is based on the year to October 2018). While we always look at total compensation first, we note that the salary component is less, at UK£483k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£79m to UK£314m. The median total CEO compensation was UK£543k.

That means Alan Hudson receives fairly typical remuneration for the CEO of a company that size. 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 AFH Financial Group has changed over time.

AIM:AFHP CEO Compensation, June 14th 2019
AIM:AFHP CEO Compensation, June 14th 2019

Is AFH Financial Group Plc Growing?

AFH Financial Group Plc has increased its earnings per share (EPS) by an average of 39% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 52%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.

Has AFH Financial Group Plc Been A Good Investment?

Boasting a total shareholder return of 122% over three years, AFH Financial Group Plc has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Alan Hudson is paid around the same as most CEOs of similar size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AFH Financial Group (free visualization of insider trades).

If you want to buy a stock that is better than AFH Financial Group, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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