Yahoo Finance Here's Why Genus plc's (LON:GNS) CEO Is Unlikely to Expect A Pay Rise This Year
Under the guidance of CEO Stephen Wilson, Genus plc (LON:GNS) 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 23 November 2022. Here is our take on why we think the CEO compensation looks appropriate.
Check out our latest analysis for Genus
Comparing Genus plc's CEO Compensation With The Industry
According to our data, Genus plc has a market capitalization of UK£2.0b, and paid its CEO total annual compensation worth UK£1.3m over the year to June 2022. Notably, that's a decrease of 55% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£614k.
On comparing similar companies from the same industry with market caps ranging from UK£842m to UK£2.7b, we found that the median CEO total compensation was UK£1.3m. This suggests that Genus remunerates its CEO largely in line with the industry average. Moreover, Stephen Wilson also holds UK£2.4m worth of Genus stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | UK£614k | UK£600k | 46% |
Other | UK£712k | UK£2.3m | 54% |
Total Compensation | UK£1.3m | UK£2.9m | 100% |
Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. Genus pays a modest slice of remuneration through salary, as compared 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.
Genus plc's Growth
Genus plc's earnings per share (EPS) grew 72% per year over the last three years. Its revenue is up 3.3% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Genus plc Been A Good Investment?
Genus plc has not done too badly by shareholders, with a total return of 4.9%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
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 Genus that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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