It's Unlikely That Dunelm Group plc's (LON:DNLM) CEO Will See A Huge Pay Rise This Year
Key Insights
Dunelm Group's Annual General Meeting to take place on 16th of November
Total pay for CEO Nick Wilkinson includes UK£582.0k salary
The overall pay is 138% above the industry average
Dunelm Group's total shareholder return over the past three years was 5.0% while its EPS grew by 20% over the past three years
Under the guidance of CEO Nick Wilkinson, Dunelm Group plc (LON:DNLM) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16th of November. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Dunelm Group
Comparing Dunelm Group plc's CEO Compensation With The Industry
Our data indicates that Dunelm Group plc has a market capitalization of UK£2.1b, and total annual CEO compensation was reported as UK£2.0m for the year to July 2023. Notably, that's a decrease of 21% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£582k.
In comparison with other companies in the British Specialty Retail industry with market capitalizations ranging from UK£1.6b to UK£5.2b, the reported median CEO total compensation was UK£835k. This suggests that Nick Wilkinson is paid more than the median for the industry. What's more, Nick Wilkinson holds UK£3.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | UK£582k | UK£580k | 29% |
Other | UK£1.4m | UK£1.9m | 71% |
Total Compensation | UK£2.0m | UK£2.5m | 100% |
Talking in terms of the industry, salary represented approximately 56% of total compensation out of all the companies we analyzed, while other remuneration made up 44% of the pie. In Dunelm 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.
Dunelm Group plc's Growth
Over the past three years, Dunelm Group plc has seen its earnings per share (EPS) grow by 20% per year. It achieved revenue growth of 3.7% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Dunelm Group plc Been A Good Investment?
Dunelm Group plc has generated a total shareholder return of 5.0% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Dunelm Group that investors should look into moving forward.
Switching gears from Dunelm Group, 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.
