Yahoo Finance We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Senior plc's (LON:SNR) CEO For Now
Key Insights
Senior will host its Annual General Meeting on 26th of April
Total pay for CEO David Squires includes UK£587.0k salary
Total compensation is 179% above industry average
Senior's EPS grew by 119% over the past three years while total shareholder return over the past three years was 41%
Under the guidance of CEO David Squires, Senior plc (LON:SNR) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 26th of April. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Senior
Comparing Senior plc's CEO Compensation With The Industry
According to our data, Senior plc has a market capitalization of UK£653m, and paid its CEO total annual compensation worth UK£2.1m over the year to December 2023. We note that's an increase of 54% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£587k.
On comparing similar companies from the British Aerospace & Defense industry with market caps ranging from UK£323m to UK£1.3b, we found that the median CEO total compensation was UK£767k. Accordingly, our analysis reveals that Senior plc pays David Squires north of the industry median. Furthermore, David Squires directly owns UK£1.1m worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | UK£587k | UK£557k | 27% |
Other | UK£1.5m | UK£831k | 73% |
Total Compensation | UK£2.1m | UK£1.4m | 100% |
On an industry level, roughly 40% of total compensation represents salary and 60% is other remuneration. In Senior's case, non-salary compensation represents a greater slice of total remuneration, 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 Senior plc's Growth Numbers
Over the past three years, Senior plc has seen its earnings per share (EPS) grow by 119% per year. Its revenue is up 14% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Senior plc Been A Good Investment?
Boasting a total shareholder return of 41% over three years, Senior plc has done well by shareholders. 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.
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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Senior.
Important note: Senior is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.
