Shareholders May Not Be So Generous With Keller Group plc's (LON:KLR) CEO Compensation And Here's Why

Key Insights

• Keller Group's Annual General Meeting to take place on 14th of May
• Total pay for CEO Mike Speakman includes UK£646.0k salary
• The overall pay is 88% above the industry average
• Keller Group's EPS grew by 37% over the past three years while total shareholder return over the past three years was 116%

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Under the guidance of CEO Mike Speakman, Keller Group plc (LON:KLR) 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 14th of May. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Keller Group

How Does Total Compensation For Mike Speakman Compare With Other Companies In The Industry?

At the time of writing, our data shows that Keller Group plc has a market capitalization of UK£1.1b, and reported total annual CEO compensation of UK£3.5m for the year to December 2024. Notably, that's an increase of 52% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£646k.

On examining similar-sized companies in the British Construction industry with market capitalizations between UK£747m and UK£2.4b, we discovered that the median CEO total compensation of that group was UK£1.9m. Accordingly, our analysis reveals that Keller Group plc pays Mike Speakman north of the industry median. Furthermore, Mike Speakman directly owns UK£3.3m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 38% of total compensation represents salary and 62% is other remuneration. It's interesting to note that Keller Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Keller Group plc's Growth

Over the past three years, Keller Group plc has seen its earnings per share (EPS) grow by 37% per year. Revenue was pretty flat on last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Keller Group plc Been A Good Investment?

We think that the total shareholder return of 116%, over three years, would leave most Keller Group plc shareholders smiling. 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.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Keller Group (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.