Here's Why Mincon Group plc's (LON:MCON) CEO May Not Expect A Pay Rise This Year

Key Insights

• Mincon Group will host its Annual General Meeting on 2nd of May
• Total pay for CEO Joe Purcell includes €200.0k salary
• The overall pay is 46% below the industry average
• Over the past three years, Mincon Group's EPS fell by 19% and over the past three years, the total loss to shareholders 60%

The underwhelming performance at Mincon Group plc (LON:MCON) recently has probably not pleased shareholders. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 2nd of May. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

Check out our latest analysis for Mincon Group

Comparing Mincon Group plc's CEO Compensation With The Industry

According to our data, Mincon Group plc has a market capitalization of UK£93m, and paid its CEO total annual compensation worth €234k over the year to December 2023. Notably, that's a decrease of 25% over the year before. In particular, the salary of €200.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the British Machinery industry with market capitalizations under UK£160m, the reported median total CEO compensation was €433k. That is to say, Joe Purcell is paid under the industry median.

Component	2023	2022	Proportion (2023)
Salary	€200k	€200k	85%
Other	€34k	€113k	15%
Total Compensation	€234k	€313k	100%

On an industry level, around 52% of total compensation represents salary and 48% is other remuneration. According to our research, Mincon Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Mincon Group plc's Growth

Over the last three years, Mincon Group plc has shrunk its earnings per share by 19% per year. Its revenue is down 7.7% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Mincon Group plc Been A Good Investment?

The return of -60% over three years would not have pleased Mincon Group plc shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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 Mincon Group that investors should look into moving forward.

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.