Yahoo Finance Shareholders Will Probably Hold Off On Increasing Macfarlane Group PLC's (LON:MACF) CEO Compensation For The Time Being
Key Insights
Macfarlane Group to hold its Annual General Meeting on 7th of May
Salary of UK£435.0k is part of CEO Peter Atkinson's total remuneration
Total compensation is 189% above industry average
Over the past three years, Macfarlane Group's EPS grew by 15% and over the past three years, the total shareholder return was 33%
Performance at Macfarlane Group PLC (LON:MACF) has been reasonably good and CEO Peter Atkinson 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 7th of May. However, some shareholders will still be cautious of paying the CEO excessively.
View our latest analysis for Macfarlane Group
Comparing Macfarlane Group PLC's CEO Compensation With The Industry
According to our data, Macfarlane Group PLC has a market capitalization of UK£230m, and paid its CEO total annual compensation worth UK£1.4m over the year to December 2023. That's a notable increase of 17% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£435k.
On examining similar-sized companies in the British Trade Distributors industry with market capitalizations between UK£80m and UK£320m, we discovered that the median CEO total compensation of that group was UK£472k. This suggests that Peter Atkinson is paid more than the median for the industry. Moreover, Peter Atkinson also holds UK£2.1m worth of Macfarlane 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£435k | UK£405k | 32% |
Other | UK£926k | UK£756k | 68% |
Total Compensation | UK£1.4m | UK£1.2m | 100% |
Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. Macfarlane 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 Macfarlane Group PLC's Growth Numbers
Macfarlane Group PLC has seen its earnings per share (EPS) increase by 15% a year over the past three years. It saw its revenue drop 3.3% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Macfarlane Group PLC Been A Good Investment?
Boasting a total shareholder return of 33% over three years, Macfarlane Group 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.
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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
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. We've identified 2 warning signs for Macfarlane Group that investors should be aware of in a dynamic business environment.
Switching gears from Macfarlane 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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