Shareholders May Be More Conservative With Galliford Try Holdings plc's (LON:GFRD) CEO Compensation For Now

Key Insights

• Galliford Try Holdings to hold its Annual General Meeting on 10th of November
• Total pay for CEO Bill Hocking includes UK£480.0k salary
• Total compensation is 337% above industry average
• Over the past three years, Galliford Try Holdings' EPS grew by 108% and over the past three years, the total shareholder return was 271%

CEO Bill Hocking has done a decent job of delivering relatively good performance at Galliford Try Holdings plc (LON:GFRD) 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 10th of November. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Galliford Try Holdings

Comparing Galliford Try Holdings plc's CEO Compensation With The Industry

Our data indicates that Galliford Try Holdings plc has a market capitalization of UK£228m, and total annual CEO compensation was reported as UK£2.4m for the year to June 2023. Notably, that's an increase of 25% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£480k.

In comparison with other companies in the British Construction industry with market capitalizations ranging from UK£81m to UK£323m, the reported median CEO total compensation was UK£556k. Accordingly, our analysis reveals that Galliford Try Holdings plc pays Bill Hocking north of the industry median. Furthermore, Bill Hocking directly owns UK£1.9m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 37% of total compensation represents salary and 63% is other remuneration. It's interesting to note that Galliford Try Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Galliford Try Holdings plc's Growth

Galliford Try Holdings plc's earnings per share (EPS) grew 108% per year over the last three years. It achieved revenue growth of 13% 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Galliford Try Holdings plc Been A Good Investment?

Boasting a total shareholder return of 271% over three years, Galliford Try Holdings plc has done well by shareholders. 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.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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 compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Galliford Try Holdings that you should be aware of before investing.

Important note: Galliford Try 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.