Key Insights

• Field Solutions Holdings' Annual General Meeting to take place on 9th of November

• Salary of AU$464.1k is part of CEO Andrew Roberts's total remuneration

• The total compensation is similar to the average for the industry

• Field Solutions Holdings' total shareholder return over the past three years was 23% while its EPS was down 39% over the past three years

CEO Andrew Roberts has done a decent job of delivering relatively good performance at Field Solutions Holdings Limited (ASX:FSG) recently. As shareholders go into the upcoming AGM on 9th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Field Solutions Holdings

How Does Total Compensation For Andrew Roberts Compare With Other Companies In The Industry?

At the time of writing, our data shows that Field Solutions Holdings Limited has a market capitalization of AU$37m, and reported total annual CEO compensation of AU$808k for the year to June 2023. Notably, that's an increase of 15% over the year before. Notably, the salary which is AU$464.1k, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Australian Telecom industry with market capitalizations below AU$311m, reported a median total CEO compensation of AU$672k. So it looks like Field Solutions Holdings compensates Andrew Roberts in line with the median for the industry. Furthermore, Andrew Roberts directly owns AU$150k worth of shares in the company.

On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. Field Solutions Holdings pays out 57% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Field Solutions Holdings Limited's Growth Numbers

Over the last three years, Field Solutions Holdings Limited has shrunk its earnings per share by 39% per year. Its revenue is up 30% over the last year.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. 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 Field Solutions Holdings Limited Been A Good Investment?

Field Solutions Holdings Limited has generated a total shareholder return of 23% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

The overall company performance has been commendable, however there are still areas for improvement. 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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Field Solutions Holdings that investors should think about before committing capital to this stock.

Switching gears from Field Solutions Holdings, 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.

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.