Yahoo Finance Here's Why Alphawave IP Group plc's (LON:AWE) CEO Compensation Is The Least Of Shareholders Concerns
Key Insights
Alphawave IP Group to hold its Annual General Meeting on 25th of June
Salary of US$573.7k is part of CEO Tony Pialis's total remuneration
Total compensation is 71% below industry average
Alphawave IP Group's EPS declined by 104% over the past three years while total shareholder loss over the past three years was 57%
Performance at Alphawave IP Group plc (LON:AWE) has been rather uninspiring recently and shareholders may be wondering how CEO Tony Pialis plans to fix this. At the next AGM coming up on 25th of June, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.
View our latest analysis for Alphawave IP Group
Comparing Alphawave IP Group plc's CEO Compensation With The Industry
Our data indicates that Alphawave IP Group plc has a market capitalization of UK£1.0b, and total annual CEO compensation was reported as US$578k for the year to December 2023. That's a modest increase of 5.6% on the prior year. In particular, the salary of US$573.7k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the British Semiconductor industry with market capitalizations ranging between UK£787m and UK£2.5b had a median total CEO compensation of US$2.0m. That is to say, Tony Pialis is paid under the industry median. Moreover, Tony Pialis also holds UK£136m worth of Alphawave IP Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$574k | US$544k | 99% |
Other | US$4.0k | US$3.1k | 1% |
Total Compensation | US$578k | US$547k | 100% |
Talking in terms of the industry, salary represented approximately 69% of total compensation out of all the companies we analyzed, while other remuneration made up 31% of the pie. Investors will find it interesting that Alphawave IP Group pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Alphawave IP Group plc's Growth
Over the last three years, Alphawave IP Group plc has shrunk its earnings per share by 104% per year. It achieved revenue growth of 74% over the last year.
The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Alphawave IP Group plc Been A Good Investment?
Few Alphawave IP Group plc shareholders would feel satisfied with the return of -57% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Alphawave IP Group pays its CEO a majority of compensation through a salary. The fact that shareholders are sitting on a loss is certainly disheartening. The fact that earnings growth has gone backwards could be a factor for the downward trend in the share price. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Alphawave IP Group that investors should think about before committing capital to this stock.
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.
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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.
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