We Think Some Shareholders May Hesitate To Increase Experian plc's (LON:EXPN) CEO Compensation

Key Insights

• Experian will host its Annual General Meeting on 17th of July
• Total pay for CEO Brian Cassin includes US$1.31m salary
• The total compensation is 61% higher than the average for the industry
• Over the past three years, Experian's EPS grew by 14% and over the past three years, the total shareholder return was 28%

Under the guidance of CEO Brian Cassin, Experian plc (LON:EXPN) has performed reasonably well recently. As shareholders go into the upcoming AGM on 17th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Experian

How Does Total Compensation For Brian Cassin Compare With Other Companies In The Industry?

According to our data, Experian plc has a market capitalization of UK£33b, and paid its CEO total annual compensation worth US$13m over the year to March 2024. That's a notable increase of 36% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.3m.

In comparison with other companies in the British Professional Services industry with market capitalizations over UK£6.2b, the reported median total CEO compensation was US$7.8m. Accordingly, our analysis reveals that Experian plc pays Brian Cassin north of the industry median. What's more, Brian Cassin holds UK£35m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$1.3m	US$1.3m	10%
Other	US$11m	US$8.0m	90%
Total Compensation	US$13m	US$9.2m	100%

On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. Experian sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Experian plc's Growth

Over the past three years, Experian plc has seen its earnings per share (EPS) grow by 14% per year. Its revenue is up 7.2% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Experian plc Been A Good Investment?

Experian plc has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Experian that investors should be aware of in a dynamic business environment.

Important note: Experian 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.

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