Increases to Standard Chartered PLC's (LON:STAN) CEO Compensation Might Cool off for now
Key Insights
- Standard Chartered's Annual General Meeting to take place on 8th of May
- Total pay for CEO Bill Winters includes US$3.15m salary
- Total compensation is 78% above industry average
- Standard Chartered's total shareholder return over the past three years was 105% while its EPS grew by 36% over the past three years
Under the guidance of CEO Bill Winters, Standard Chartered PLC (LON:STAN) 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 8th of May. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Standard Chartered
How Does Total Compensation For Bill Winters Compare With Other Companies In The Industry?
At the time of writing, our data shows that Standard Chartered PLC has a market capitalization of UK£25b, and reported total annual CEO compensation of US$13m for the year to December 2024. We note that's an increase of 43% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$3.2m.
On comparing similar companies in the British Banks industry with market capitalizations above UK£6.0b, we found that the median total CEO compensation was US$7.5m. This suggests that Bill Winters is paid more than the median for the industry. Furthermore, Bill Winters directly owns UK£34m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$3.2m | US$3.2m | 24% |
| Other | US$10m | US$6.1m | 76% |
| Total Compensation | US$13m | US$9.3m | 100% |
On an industry level, roughly 30% of total compensation represents salary and 70% is other remuneration. Standard Chartered 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.
Standard Chartered PLC's Growth
Standard Chartered PLC's earnings per share (EPS) grew 36% per year over the last three years. It achieved revenue growth of 14% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Standard Chartered PLC Been A Good Investment?
Boasting a total shareholder return of 105% over three years, Standard Chartered PLC has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Standard Chartered that investors should look into moving forward.
Switching gears from Standard Chartered, 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.
Valuation is complex, but we're here to simplify it.
Discover if Standard Chartered might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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