Yahoo Finance Shareholders Would Not Be Objecting To CVS Group plc's (LON:CVSG) CEO Compensation And Here's Why
It would be hard to discount the role that CEO Richard William Fairman has played in delivering the impressive results at CVS Group plc (LON:CVSG) recently. Coming up to the next AGM on 23 November 2022, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
See our latest analysis for CVS Group
How Does Total Compensation For Richard William Fairman Compare With Other Companies In The Industry?
Our data indicates that CVS Group plc has a market capitalization of UK£1.4b, and total annual CEO compensation was reported as UK£1.7m for the year to June 2022. That's a modest increase of 3.1% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£412k.
On examining similar-sized companies in the industry with market capitalizations between UK£842m and UK£2.7b, we discovered that the median CEO total compensation of that group was UK£1.5m. So it looks like CVS Group compensates Richard William Fairman in line with the median for the industry. Moreover, Richard William Fairman also holds UK£573k worth of CVS Group stock directly under their own name.
Component | 2022 | 2021 | Proportion (2022) |
Salary | UK£412k | UK£404k | 25% |
Other | UK£1.3m | UK£1.2m | 75% |
Total Compensation | UK£1.7m | UK£1.6m | 100% |
On an industry level, around 52% of total compensation represents salary and 48% is other remuneration. It's interesting to note that CVS Group allocates a smaller portion of compensation to salary in comparison 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 CVS Group plc's Growth Numbers
CVS Group plc has seen its earnings per share (EPS) increase by 46% a year over the past three years. In the last year, its revenue is up 8.6%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 CVS Group plc Been A Good Investment?
We think that the total shareholder return of 89%, over three years, would leave most CVS Group plc shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
So you may want to check if insiders are buying CVS Group shares with their own money (free access).
Switching gears from CVS Group, 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.
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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.
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