Yahoo Finance We Think Some Shareholders May Hesitate To Increase Gama Aviation Plc's (LON:GMAA) CEO Compensation
Key Insights
Gama Aviation will host its Annual General Meeting on 3rd of November
Salary of US$444.9k is part of CEO Marwan Abdel-Khalek's total remuneration
The overall pay is 42% above the industry average
Gama Aviation's EPS grew by 41% over the past three years while total shareholder return over the past three years was 136%
CEO Marwan Abdel-Khalek has done a decent job of delivering relatively good performance at Gama Aviation Plc (LON:GMAA) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 3rd of November. However, some shareholders will still be cautious of paying the CEO excessively.
View our latest analysis for Gama Aviation
How Does Total Compensation For Marwan Abdel-Khalek Compare With Other Companies In The Industry?
Our data indicates that Gama Aviation Plc has a market capitalization of UK£53m, and total annual CEO compensation was reported as US$567k for the year to December 2022. That's a notable decrease of 13% on last year. In particular, the salary of US$444.9k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the the United Kingdom Airlines industry with market capitalizations under UK£165m, the reported median total CEO compensation was US$400k. This suggests that Marwan Abdel-Khalek is paid more than the median for the industry. What's more, Marwan Abdel-Khalek holds UK£12m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$445k | US$495k | 78% |
Other | US$122k | US$154k | 22% |
Total Compensation | US$567k | US$649k | 100% |
Talking in terms of the industry, salary represented approximately 72% of total compensation out of all the companies we analyzed, while other remuneration made up 28% of the pie. Our data reveals that Gama Aviation allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Gama Aviation Plc's Growth
Over the past three years, Gama Aviation Plc has seen its earnings per share (EPS) grow by 41% per year. In the last year, its revenue is up 8.7%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Gama Aviation Plc Been A Good Investment?
We think that the total shareholder return of 136%, over three years, would leave most Gama Aviation 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...
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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Gama Aviation (2 are potentially serious!) that you should be aware of before investing here.
Switching gears from Gama Aviation, 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.
