Games Workshop Group PLC's (LON:GAW) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Games Workshop Group to hold its Annual General Meeting on 18th of September
• Total pay for CEO Kevin Rountree includes UK£739.0k salary
• Total compensation is 68% below industry average
• Over the past three years, Games Workshop Group's EPS grew by 7.2% and over the past three years, the total loss to shareholders 0.1%

Shareholders may be wondering what CEO Kevin Rountree plans to do to improve the less than great performance at Games Workshop Group PLC (LON:GAW) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 18th of September. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

See our latest analysis for Games Workshop Group

Comparing Games Workshop Group PLC's CEO Compensation With The Industry

At the time of writing, our data shows that Games Workshop Group PLC has a market capitalization of UK£3.5b, and reported total annual CEO compensation of UK£1.8m for the year to June 2024. We note that's an increase of 29% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£739k.

For comparison, other companies in the the United Kingdom Leisure industry with market capitalizations ranging between UK£1.5b and UK£4.9b had a median total CEO compensation of UK£5.6m. That is to say, Kevin Rountree is paid under the industry median. Furthermore, Kevin Rountree directly owns UK£2.0m worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	UK£739k	UK£715k	41%
Other	UK£1.1m	UK£680k	59%
Total Compensation	UK£1.8m	UK£1.4m	100%

Speaking on an industry level, nearly 71% of total compensation represents salary, while the remainder of 29% is other remuneration. Games Workshop Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Games Workshop Group PLC's Growth Numbers

Games Workshop Group PLC's earnings per share (EPS) grew 7.2% per year over the last three years. Its revenue is up 12% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the improvement in EPSis modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Games Workshop Group PLC Been A Good Investment?

Given the total shareholder loss of 0.1% over three years, many shareholders in Games Workshop Group PLC are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The lack lustre share price performance may have something to do with the flat earnings growth. Shareholders will get the chance to question the board on key concerns and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Games Workshop Group that you should be aware of before investing.

Important note: Games Workshop Group 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.