Gateley (Holdings) Plc's (LON:GTLY) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Gateley (Holdings) to hold its Annual General Meeting on 23rd of September
• CEO Rod Waldie's total compensation includes salary of UK£339.0k
• The total compensation is similar to the average for the industry
• Over the past three years, Gateley (Holdings)'s EPS fell by 12% and over the past three years, the total loss to shareholders 34%

Gateley (Holdings) Plc (LON:GTLY) has not performed well recently and CEO Rod Waldie will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 23rd of September. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Gateley (Holdings)

How Does Total Compensation For Rod Waldie Compare With Other Companies In The Industry?

At the time of writing, our data shows that Gateley (Holdings) Plc has a market capitalization of UK£184m, and reported total annual CEO compensation of UK£422k for the year to April 2024. We note that's an increase of 31% above last year. We note that the salary portion, which stands at UK£339.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the British Professional Services industry with market caps ranging from UK£76m to UK£305m, we found that the median CEO total compensation was UK£390k. From this we gather that Rod Waldie is paid around the median for CEOs in the industry. Moreover, Rod Waldie also holds UK£1.7m worth of Gateley (Holdings) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	UK£339k	UK£323k	80%
Other	UK£83k	-	20%
Total Compensation	UK£422k	UK£323k	100%

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. It's interesting to note that Gateley (Holdings) pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Gateley (Holdings) Plc's Growth Numbers

Gateley (Holdings) Plc has reduced its earnings per share by 12% a year over the last three years. Its revenue is up 6.0% over the last year.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Gateley (Holdings) Plc Been A Good Investment?

Few Gateley (Holdings) Plc shareholders would feel satisfied with the return of -34% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Gateley (Holdings) (1 is a bit unpleasant!) that you should be aware of before investing here.

Important note: Gateley (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.