We Think Some Shareholders May Hesitate To Increase RELX PLC's (LON:REL) CEO Compensation
Key Insights
- RELX's Annual General Meeting to take place on 24th of April
- Salary of UK£1.41m is part of CEO Erik Engstrom's total remuneration
- Total compensation is 81% above industry average
- RELX's EPS grew by 11% over the past three years while total shareholder return over the past three years was 73%
Performance at RELX PLC (LON:REL) has been reasonably good and CEO Erik Engstrom has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 24th of April, 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 be hesitant of being overly generous with CEO compensation.
View our latest analysis for RELX
How Does Total Compensation For Erik Engstrom Compare With Other Companies In The Industry?
Our data indicates that RELX PLC has a market capitalization of UK£72b, and total annual CEO compensation was reported as UK£14m for the year to December 2024. That's a notable decrease of 9.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£1.4m.
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£7.5m. Hence, we can conclude that Erik Engstrom is remunerated higher than the industry median. Furthermore, Erik Engstrom directly owns UK£46m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | UK£1.4m | UK£1.4m | 10% |
| Other | UK£12m | UK£14m | 90% |
| Total Compensation | UK£14m | UK£15m | 100% |
On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. RELX 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.
RELX PLC's Growth
RELX PLC has seen its earnings per share (EPS) increase by 11% a year over the past three years. In the last year, its revenue is up 3.0%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 RELX PLC Been A Good Investment?
Boasting a total shareholder return of 73% over three years, RELX PLC has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
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 a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for RELX that investors should be aware of in a dynamic business environment.
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.