Yahoo Finance Devro plc's (LON:DVO) CEO Compensation Is Looking A Bit Stretched At The Moment
CEO Rutger Helbing has done a decent job of delivering relatively good performance at Devro plc (LON:DVO) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29 April 2021. However, some shareholders will still be cautious of paying the CEO excessively.
Check out our latest analysis for Devro
How Does Total Compensation For Rutger Helbing Compare With Other Companies In The Industry?
According to our data, Devro plc has a market capitalization of UK£331m, and paid its CEO total annual compensation worth UK£734k over the year to December 2020. That's a notable increase of 39% on last year. We note that the salary portion, which stands at UK£456.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations ranging from UK£144m to UK£578m, the reported median CEO total compensation was UK£521k. Hence, we can conclude that Rutger Helbing is remunerated higher than the industry median. What's more, Rutger Helbing holds UK£188k worth of shares in the company in their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£456k | UK£447k | 62% |
Other | UK£278k | UK£80k | 38% |
Total Compensation | UK£734k | UK£527k | 100% |
Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. Devro pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Devro plc's Growth Numbers
Over the past three years, Devro plc has seen its earnings per share (EPS) grow by 14% per year. In the last year, its revenue changed by just 1.0%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Devro plc Been A Good Investment?
Devro plc has not done too badly by shareholders, with a total return of 3.3%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Devro that investors should think about before committing capital to this stock.
Switching gears from Devro, 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.
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. 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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