It's Unlikely That The Alumasc Group plc's (LON:ALU) CEO Will See A Huge Pay Rise This Year

CEO G. Hooper has done a decent job of delivering relatively good performance at The Alumasc Group plc (LON:ALU) recently. As shareholders go into the upcoming AGM on 21 October 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Alumasc Group

How Does Total Compensation For G. Hooper Compare With Other Companies In The Industry?

According to our data, The Alumasc Group plc has a market capitalization of UK£82m, and paid its CEO total annual compensation worth UK£565k over the year to June 2021. Notably, that's an increase of 61% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£274k.

For comparison, other companies in the industry with market capitalizations below UK£146m, reported a median total CEO compensation of UK£233k. This suggests that G. Hooper is paid more than the median for the industry. Moreover, G. Hooper also holds UK£2.0m worth of Alumasc Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	UK£274k	UK£271k	48%
Other	UK£291k	UK£81k	52%
Total Compensation	UK£565k	UK£352k	100%

On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. Alumasc Group pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at The Alumasc Group plc's Growth Numbers

Over the past three years, The Alumasc Group plc has seen its earnings per share (EPS) grow by 24% per year. It achieved revenue growth of 19% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 The Alumasc Group plc Been A Good Investment?

Most shareholders would probably be pleased with The Alumasc Group plc for providing a total return of 106% over three years. 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.

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, 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which is concerning) in Alumasc Group we think you should know about.

Switching gears from Alumasc 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.

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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