Yahoo Finance PCI-PAL PLC's (LON:PCIP) CEO Looks Like They Deserve Their Pay Packet
It would be hard to discount the role that CEO James Barham has played in delivering the impressive results at PCI-PAL PLC (LON:PCIP) recently. Coming up to the next AGM on 27 October 2022, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.
See our latest analysis for PCI-PAL
How Does Total Compensation For James Barham Compare With Other Companies In The Industry?
Our data indicates that PCI-PAL PLC has a market capitalization of UK£36m, and total annual CEO compensation was reported as UK£326k for the year to June 2022. That's a fairly small increase of 3.9% over the previous year. Notably, the salary which is UK£210.7k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below UK£178m, we found that the median total CEO compensation was UK£285k. So it looks like PCI-PAL compensates James Barham in line with the median for the industry. What's more, James Barham holds UK£103k worth of shares in the company in their own name.
Component | 2022 | 2021 | Proportion (2022) |
Salary | UK£211k | UK£186k | 65% |
Other | UK£116k | UK£128k | 35% |
Total Compensation | UK£326k | UK£314k | 100% |
On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. There isn't a significant difference between PCI-PAL and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
PCI-PAL PLC's Growth
PCI-PAL PLC has seen its earnings per share (EPS) increase by 29% a year over the past three years. Its revenue is up 62% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast 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 PCI-PAL PLC Been A Good Investment?
Boasting a total shareholder return of 98% over three years, PCI-PAL PLC has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.
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 PCI-PAL 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.
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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