Shareholders May Not Be So Generous With Haydale Graphene Industries plc's (LON:HAYD) CEO Compensation And Here's Why
Key Insights
Haydale Graphene Industries to hold its Annual General Meeting on 7th of December
Total pay for CEO Keith Broadbent includes UK£209.0k salary
The total compensation is similar to the average for the industry
Haydale Graphene Industries' three-year loss to shareholders was 89% while its EPS grew by 3.8% over the past three years
Shareholders of Haydale Graphene Industries plc (LON:HAYD) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 7th of December. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
Check out our latest analysis for Haydale Graphene Industries
Comparing Haydale Graphene Industries plc's CEO Compensation With The Industry
According to our data, Haydale Graphene Industries plc has a market capitalization of UK£7.8m, and paid its CEO total annual compensation worth UK£293k over the year to June 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of UK£209.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the British Chemicals industry with market capitalizations below UK£158m, we found that the median total CEO compensation was UK£284k. From this we gather that Keith Broadbent is paid around the median for CEOs in the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | UK£209k | UK£211k | 71% |
Other | UK£84k | UK£86k | 29% |
Total Compensation | UK£293k | UK£297k | 100% |
Talking in terms of the industry, salary represented approximately 71% of total compensation out of all the companies we analyzed, while other remuneration made up 29% of the pie. Our data reveals that Haydale Graphene Industries allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Haydale Graphene Industries plc's Growth Numbers
Over the past three years, Haydale Graphene Industries plc has seen its earnings per share (EPS) grow by 3.8% per year. It achieved revenue growth of 48% over the last year.
We like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. 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 Haydale Graphene Industries plc Been A Good Investment?
With a total shareholder return of -89% over three years, Haydale Graphene Industries plc shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 5 warning signs for Haydale Graphene Industries (3 make us uncomfortable!) that you should be aware of before investing here.
Important note: Haydale Graphene Industries 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.
