Hercules Site Services Plc's (LON:HERC) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Hercules Site Services will host its Annual General Meeting on 17th of March
• CEO Brusk Korkmaz's total compensation includes salary of UK£198.0k
• Total compensation is similar to the industry average
• Hercules Site Services' EPS grew by 96% over the past three years while total shareholder return over the past three years was 16%

Under the guidance of CEO Brusk Korkmaz, Hercules Site Services Plc (LON:HERC) has performed reasonably well recently. 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 March. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Hercules Site Services

How Does Total Compensation For Brusk Korkmaz Compare With Other Companies In The Industry?

Our data indicates that Hercules Site Services Plc has a market capitalization of UK£38m, and total annual CEO compensation was reported as UK£404k for the year to September 2024. Notably, that's an increase of 20% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£198k.

For comparison, other companies in the British Construction industry with market capitalizations below UK£155m, reported a median total CEO compensation of UK£410k. This suggests that Hercules Site Services remunerates its CEO largely in line with the industry average. Furthermore, Brusk Korkmaz directly owns UK£17m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Hercules Site Services pays out 49% 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.

Hercules Site Services Plc's Growth

Hercules Site Services Plc's earnings per share (EPS) grew 96% per year over the last three years. Its revenue is up 28% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Hercules Site Services Plc Been A Good Investment?

With a total shareholder return of 16% over three years, Hercules Site Services Plc shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Hercules Site Services that you should be aware of before investing.

Switching gears from Hercules Site Services, 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.