Increases to Galliford Try Holdings plc's (LON:GFRD) CEO Compensation Might Cool off for now
Key Insights
Galliford Try Holdings will host its Annual General Meeting on 10th of November
Salary of UK£480.0k is part of CEO Bill Hocking's total remuneration
Total compensation is 337% above industry average
Galliford Try Holdings' EPS grew by 108% over the past three years while total shareholder return over the past three years was 271%
Performance at Galliford Try Holdings plc (LON:GFRD) has been reasonably good and CEO Bill Hocking has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 10th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.
View our latest analysis for Galliford Try Holdings
How Does Total Compensation For Bill Hocking Compare With Other Companies In The Industry?
At the time of writing, our data shows that Galliford Try Holdings plc has a market capitalization of UK£228m, and reported total annual CEO compensation of UK£2.4m for the year to June 2023. Notably, that's an increase of 25% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£480k.
On comparing similar companies from the British Construction industry with market caps ranging from UK£81m to UK£323m, we found that the median CEO total compensation was UK£556k. Hence, we can conclude that Bill Hocking is remunerated higher than the industry median. Furthermore, Bill Hocking directly owns UK£1.9m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | UK£480k | UK£463k | 20% |
Other | UK£1.9m | UK£1.5m | 80% |
Total Compensation | UK£2.4m | UK£1.9m | 100% |
On an industry level, roughly 37% of total compensation represents salary and 63% is other remuneration. In Galliford Try Holdings' 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 Galliford Try Holdings plc's Growth Numbers
Over the past three years, Galliford Try Holdings plc has seen its earnings per share (EPS) grow by 108% per year. In the last year, its revenue is up 13%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Galliford Try Holdings plc Been A Good Investment?
Most shareholders would probably be pleased with Galliford Try Holdings plc for providing a total return of 271% 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...
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.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Galliford Try Holdings that you should be aware of before investing.
Switching gears from Galliford Try Holdings, 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.
