Here's Why Shareholders May Want To Be Cautious With Increasing Elixirr International plc's (LON:ELIX) CEO Pay Packet

Key Insights

• Elixirr International will host its Annual General Meeting on 25th of June
• CEO Stephen Newton's total compensation includes salary of UK£315.0k
• Total compensation is 242% above industry average
• Elixirr International's total shareholder return over the past three years was 4.1% while its EPS grew by 46% over the past three years

Under the guidance of CEO Stephen Newton, Elixirr International plc (LON:ELIX) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 25th of June. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Elixirr International

How Does Total Compensation For Stephen Newton Compare With Other Companies In The Industry?

According to our data, Elixirr International plc has a market capitalization of UK£265m, and paid its CEO total annual compensation worth UK£1.6m over the year to December 2023. That's a notable increase of 12% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£315k.

For comparison, other companies in the British Professional Services industry with market capitalizations ranging between UK£157m and UK£630m had a median total CEO compensation of UK£469k. Accordingly, our analysis reveals that Elixirr International plc pays Stephen Newton north of the industry median. Furthermore, Stephen Newton directly owns UK£9.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	UK£315k	UK£300k	20%
Other	UK£1.3m	UK£1.1m	80%
Total Compensation	UK£1.6m	UK£1.4m	100%

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. In Elixirr International's case, non-salary compensation represents a greater slice of total remuneration, 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.

Elixirr International plc's Growth

Over the past three years, Elixirr International plc has seen its earnings per share (EPS) grow by 46% per year. In the last year, its revenue is up 20%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Elixirr International plc Been A Good Investment?

With a total shareholder return of 4.1% over three years, Elixirr International plc has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

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. 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 a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Elixirr International that you should be aware of before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com