Yahoo Finance We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Redrow plc's (LON:RDW) CEO For Now
Key Insights
Redrow's Annual General Meeting to take place on 10th of November
CEO Matthew Brennan-Pratt's total compensation includes salary of UK£656.0k
The overall pay is 247% above the industry average
Redrow's total shareholder return over the past three years was 34% while its EPS grew by 41% over the past three years
CEO Matthew Brennan-Pratt has done a decent job of delivering relatively good performance at Redrow plc (LON:RDW) recently. 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 10th of November. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for Redrow
Comparing Redrow plc's CEO Compensation With The Industry
According to our data, Redrow plc has a market capitalization of UK£1.6b, and paid its CEO total annual compensation worth UK£2.1m over the year to July 2023. That's a notable increase of 30% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£656k.
On comparing similar companies from the British Consumer Durables industry with market caps ranging from UK£808m to UK£2.6b, we found that the median CEO total compensation was UK£601k. Accordingly, our analysis reveals that Redrow plc pays Matthew Brennan-Pratt north of the industry median. What's more, Matthew Brennan-Pratt holds UK£550k worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | UK£656k | UK£625k | 31% |
Other | UK£1.4m | UK£976k | 69% |
Total Compensation | UK£2.1m | UK£1.6m | 100% |
On an industry level, around 41% of total compensation represents salary and 59% is other remuneration. In Redrow's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Redrow plc's Growth Numbers
Redrow plc's earnings per share (EPS) grew 41% per year over the last three years. Revenue was pretty flat on last year.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Redrow plc Been A Good Investment?
Most shareholders would probably be pleased with Redrow plc for providing a total return of 34% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Redrow (1 is a bit unpleasant!) that you should be aware of before investing here.
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.
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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.
