Yahoo Finance The Alumasc Group plc's (LON:ALU) CEO Will Probably Have Their Compensation Approved By Shareholders
We have been pretty impressed with the performance at The Alumasc Group plc (LON:ALU) recently and CEO G. Hooper deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 27 October 2022. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
View our latest analysis for Alumasc Group
How Does Total Compensation For G. Hooper Compare With Other Companies In The Industry?
According to our data, The Alumasc Group plc has a market capitalization of UK£50m, and paid its CEO total annual compensation worth UK£704k over the year to June 2022. That's a notable increase of 25% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£282k.
For comparison, other companies in the industry with market capitalizations below UK£178m, reported a median total CEO compensation of UK£755k. This suggests that Alumasc Group remunerates its CEO largely in line with the industry average. Furthermore, G. Hooper directly owns UK£1.1m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2022 | 2021 | Proportion (2022) |
Salary | UK£282k | UK£274k | 40% |
Other | UK£422k | UK£291k | 60% |
Total Compensation | UK£704k | UK£565k | 100% |
On an industry level, roughly 44% of total compensation represents salary and 56% is other remuneration. Alumasc Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
The Alumasc Group plc's Growth
The Alumasc Group plc has seen its earnings per share (EPS) increase by 137% a year over the past three years. Its revenue is up 15% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has The Alumasc Group plc Been A Good Investment?
We think that the total shareholder return of 96%, over three years, would leave most The Alumasc Group plc shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 2 which shouldn't be ignored) in Alumasc Group we think you should know about.
Important note: Alumasc Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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