It May Be Possible That Auto Trader Group plc's (LON:AUTO) CEO Compensation Could Get Bumped Up
Key Insights
Auto Trader Group will host its Annual General Meeting on 14th of September
Salary of UK£592.0k is part of CEO Nathan Coe's total remuneration
The total compensation is 30% less than the average for the industry
Auto Trader Group's total shareholder return over the past three years was 11% while its EPS grew by 4.8% over the past three years
Shareholders will be pleased by the robust performance of Auto Trader Group plc (LON:AUTO) recently and this will be kept in mind in the upcoming AGM on 14th of September. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.
View our latest analysis for Auto Trader Group
How Does Total Compensation For Nathan Coe Compare With Other Companies In The Industry?
According to our data, Auto Trader Group plc has a market capitalization of UK£5.5b, and paid its CEO total annual compensation worth UK£1.3m over the year to March 2023. We note that's a decrease of 23% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£592k.
In comparison with other companies in the British Interactive Media and Services industry with market capitalizations ranging from UK£3.2b to UK£9.6b, the reported median CEO total compensation was UK£1.8m. That is to say, Nathan Coe is paid under the industry median. Furthermore, Nathan Coe directly owns UK£19m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | UK£592k | UK£577k | 46% |
Other | UK£689k | UK£1.1m | 54% |
Total Compensation | UK£1.3m | UK£1.7m | 100% |
On an industry level, roughly 80% of total compensation represents salary and 20% is other remuneration. In Auto Trader Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Auto Trader Group plc's Growth Numbers
Over the past three years, Auto Trader Group plc has seen its earnings per share (EPS) grow by 4.8% per year. Its revenue is up 16% over the last year.
This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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 Auto Trader Group plc Been A Good Investment?
Auto Trader Group plc has served shareholders reasonably well, with a total return of 11% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
The company's overall performance, while not bad, could be better. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Auto Trader Group.
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.
