- Oops!Something went wrong.Please try again later.
The results at James Cropper PLC (LON:CRPR) have been quite disappointing recently and CEO Phil Wild bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 28 July 2021. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Comparing James Cropper PLC's CEO Compensation With the industry
At the time of writing, our data shows that James Cropper PLC has a market capitalization of UK£138m, and reported total annual CEO compensation of UK£254k for the year to March 2021. That's a notable decrease of 15% on last year. In particular, the salary of UK£204.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar companies from the same industry with market caps ranging from UK£73m to UK£292m, we found that the median CEO total compensation was UK£254k. From this we gather that Phil Wild is paid around the median for CEOs in the industry. What's more, Phil Wild holds UK£371k worth of shares in the company in their own name.
On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. James Cropper pays out 80% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at James Cropper PLC's Growth Numbers
James Cropper PLC has reduced its earnings per share by 28% a year over the last three years. In the last year, its revenue is down 25%.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has James Cropper PLC Been A Good Investment?
With a three year total loss of 10% for the shareholders, James Cropper PLC would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for James Cropper that investors should be aware of in a dynamic business environment.
Switching gears from James Cropper, 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.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.