The Alumasc Group plc's (LON:ALU) CEO Will Probably Have Their Compensation Approved By Shareholders

We have been pretty impressed with the performance at The Alumasc Group plc (LON:ALU) recently and CEO G. Hooper deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 27 October 2022. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Alumasc Group

Comparing The Alumasc Group plc's CEO Compensation With The Industry

At the time of writing, our data shows that The Alumasc Group plc has a market capitalization of UK£50m, and reported total annual CEO compensation of UK£704k for the year to June 2022. We note that's an increase of 25% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£282k.

For comparison, other companies in the industry with market capitalizations below UK£178m, reported a median total CEO compensation of UK£755k. This suggests that Alumasc Group remunerates its CEO largely in line with the industry average. Moreover, G. Hooper also holds UK£1.1m 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	2022	2021	Proportion (2022)
Salary	UK£282k	UK£274k	40%
Other	UK£422k	UK£291k	60%
Total Compensation	UK£704k	UK£565k	100%

Speaking on an industry level, nearly 44% of total compensation represents salary, while the remainder of 56% is other remuneration. Although there is a difference in how total compensation is set, Alumasc Group more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

The Alumasc Group plc's Growth

The Alumasc Group plc's earnings per share (EPS) grew 137% per year over the last three years. Its revenue is up 15% 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 decent revenue growth in the last year, suggesting the business is healthy and growing. 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 The Alumasc Group plc Been A Good Investment?

Boasting a total shareholder return of 96% over three years, The Alumasc Group plc has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Alumasc Group (of which 2 are a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

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.

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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.