It's Unlikely That Bank of Georgia Group PLC's (LON:BGEO) CEO Will See A Huge Pay Rise This Year

Key Insights

• Bank of Georgia Group will host its Annual General Meeting on 17th of June
• CEO Archil Gachechiladze's total compensation includes salary of GEL6.92m
• The total compensation is 406% higher than the average for the industry
• Over the past three years, Bank of Georgia Group's EPS grew by 64% and over the past three years, the total shareholder return was 238%

Performance at Bank of Georgia Group PLC (LON:BGEO) has been reasonably good and CEO Archil Gachechiladze has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 17th of June. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Bank of Georgia Group

How Does Total Compensation For Archil Gachechiladze Compare With Other Companies In The Industry?

Our data indicates that Bank of Georgia Group PLC has a market capitalization of UK£1.6b, and total annual CEO compensation was reported as GEL16m for the year to December 2023. That's a fairly small increase of 7.6% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at GEL6.9m.

On comparing similar companies from the British Banks industry with market caps ranging from UK£786m to UK£2.5b, we found that the median CEO total compensation was GEL3.1m. Accordingly, our analysis reveals that Bank of Georgia Group PLC pays Archil Gachechiladze north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	GEL6.9m	GEL7.0m	44%
Other	GEL8.8m	GEL7.7m	56%
Total Compensation	GEL16m	GEL15m	100%

Speaking on an industry level, nearly 40% of total compensation represents salary, while the remainder of 60% is other remuneration. Bank of Georgia Group pays out 44% of remuneration in the form of a salary, significantly higher than the industry average. 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 Bank of Georgia Group PLC's Growth Numbers

Over the past three years, Bank of Georgia Group PLC has seen its earnings per share (EPS) grow by 64% per year. Its revenue is up 27% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Bank of Georgia Group PLC Been A Good Investment?

Boasting a total shareholder return of 238% over three years, Bank of Georgia Group PLC has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which is a bit unpleasant) in Bank of Georgia Group we think you should know about.

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.