Yahoo Finance Here's Why Howden Joinery Group Plc's (LON:HWDN) CEO Compensation Is The Least Of Shareholders' Concerns
Key Insights
Howden Joinery Group to hold its Annual General Meeting on 2nd of May
CEO William Livingston's total compensation includes salary of UK£710.0k
The overall pay is comparable to the industry average
Over the past three years, Howden Joinery Group's EPS grew by 23% and over the past three years, the total shareholder return was 20%
Performance at Howden Joinery Group Plc (LON:HWDN) has been reasonably good and CEO William Livingston has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 2nd of May. Here is our take on why we think the CEO compensation looks appropriate.
View our latest analysis for Howden Joinery Group
Comparing Howden Joinery Group Plc's CEO Compensation With The Industry
Our data indicates that Howden Joinery Group Plc has a market capitalization of UK£4.8b, and total annual CEO compensation was reported as UK£2.5m for the year to December 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£710k.
On comparing similar companies from the British Trade Distributors industry with market caps ranging from UK£3.2b to UK£9.6b, we found that the median CEO total compensation was UK£2.5m. From this we gather that William Livingston is paid around the median for CEOs in the industry. Moreover, William Livingston also holds UK£4.3m worth of Howden Joinery 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 | UK£710k | UK£670k | 28% |
Other | UK£1.8m | UK£1.9m | 72% |
Total Compensation | UK£2.5m | UK£2.6m | 100% |
On an industry level, around 58% of total compensation represents salary and 42% is other remuneration. Howden Joinery Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Howden Joinery Group Plc's Growth Numbers
Howden Joinery Group Plc's earnings per share (EPS) grew 23% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Howden Joinery Group Plc Been A Good Investment?
Howden Joinery Group Plc has served shareholders reasonably well, with a total return of 20% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Howden Joinery Group that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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.
