Most Shareholders Will Probably Find That The CEO Compensation For Intertek Group plc (LON:ITRK) Is Reasonable
Key Insights
- Intertek Group's Annual General Meeting to take place on 22nd of May
- Total pay for CEO Andre Pierre Lacroix includes UK£1.05m salary
- The overall pay is comparable to the industry average
- Intertek Group's EPS grew by 6.6% over the past three years while total shareholder return over the past three years was 11%
Under the guidance of CEO Andre Pierre Lacroix, Intertek Group plc (LON:ITRK) 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 22nd of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
View our latest analysis for Intertek Group
Comparing Intertek Group plc's CEO Compensation With The Industry
Our data indicates that Intertek Group plc has a market capitalization of UK£8.0b, and total annual CEO compensation was reported as UK£6.5m for the year to December 2024. Notably, that's an increase of 14% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£1.1m.
For comparison, other companies in the British Professional Services industry with market capitalizations above UK£6.0b, reported a median total CEO compensation of UK£7.3m. From this we gather that Andre Pierre Lacroix is paid around the median for CEOs in the industry. Moreover, Andre Pierre Lacroix also holds UK£29m worth of Intertek Group 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£1.1m | UK£1.0m | 16% |
| Other | UK£5.4m | UK£4.7m | 84% |
| Total Compensation | UK£6.5m | UK£5.7m | 100% |
On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. It's interesting to note that Intertek 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.
A Look at Intertek Group plc's Growth Numbers
Intertek Group plc has seen its earnings per share (EPS) increase by 6.6% a year over the past three years. Its revenue is up 1.9% over the last year.
We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Intertek Group plc Been A Good Investment?
Intertek Group plc has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this 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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
Shareholders may want to check for free if Intertek Group insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.