Shareholders May Be More Conservative With Ceres Power Holdings plc's (LON:CWR) CEO Compensation For Now
Key Insights
- Ceres Power Holdings' Annual General Meeting to take place on 15th of May
- Total pay for CEO Phil Caldwell includes UK£372.0k salary
- The overall pay is 58% above the industry average
- Ceres Power Holdings' three-year loss to shareholders was 90% while its EPS was down 5.6% over the past three years
Shareholders of Ceres Power Holdings plc (LON:CWR) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also lacking, despite revenue growth. The AGM coming up on 15th of May will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.
See our latest analysis for Ceres Power Holdings
Comparing Ceres Power Holdings plc's CEO Compensation With The Industry
At the time of writing, our data shows that Ceres Power Holdings plc has a market capitalization of UK£122m, and reported total annual CEO compensation of UK£983k for the year to December 2024. That's a notable increase of 66% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£372k.
On examining similar-sized companies in the British Electrical industry with market capitalizations between UK£75m and UK£301m, we discovered that the median CEO total compensation of that group was UK£623k. Accordingly, our analysis reveals that Ceres Power Holdings plc pays Phil Caldwell north of the industry median. What's more, Phil Caldwell holds UK£293k worth of shares in the company in their own name.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | UK£372k | UK£334k | 38% |
| Other | UK£611k | UK£259k | 62% |
| Total Compensation | UK£983k | UK£593k | 100% |
Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. In Ceres Power Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.
Ceres Power Holdings plc's Growth
Ceres Power Holdings plc has reduced its earnings per share by 5.6% a year over the last three years. It achieved revenue growth of 132% over the last year.
The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Ceres Power Holdings plc Been A Good Investment?
The return of -90% over three years would not have pleased Ceres Power Holdings plc shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.
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 a bit unpleasant) in Ceres Power Holdings we think you should know about.
Important note: Ceres Power Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.