This Is Why Games Workshop Group PLC's (LON:GAW) CEO Can Expect A Bump Up In Their Pay Packet

Key Insights

• Games Workshop Group's Annual General Meeting to take place on 20th of September
• Total pay for CEO Kevin Rountree includes UK£715.0k salary
• The total compensation is 62% less than the average for the industry
• Over the past three years, Games Workshop Group's EPS grew by 23% and over the past three years, the total shareholder return was 17%

Shareholders will probably not be disappointed by the robust results at Games Workshop Group PLC (LON:GAW) recently and they will be keeping this in mind as they go into the AGM on 20th of September. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

View 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£1.4m for the year to May 2023. That's a fairly small increase of 5.1% over the previous year. In particular, the salary of UK£715.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the the United Kingdom Leisure industry with market capitalizations ranging from UK£1.6b to UK£5.1b, the reported median CEO total compensation was UK£3.7m. That is to say, Kevin Rountree is paid under the industry median. Moreover, Kevin Rountree also holds UK£1.5m worth of Games Workshop Group stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	UK£715k	UK£716k	51%
Other	UK£680k	UK£611k	49%
Total Compensation	UK£1.4m	UK£1.3m	100%

On an industry level, around 51% of total compensation represents salary and 49% is other remuneration. Although there is a difference in how total compensation is set, Games Workshop Group more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Games Workshop Group PLC's Growth Numbers

Games Workshop Group PLC has seen its earnings per share (EPS) increase by 23% a year over the past three years. It achieved revenue growth of 14% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Games Workshop Group PLC Been A Good Investment?

Games Workshop Group PLC has generated a total shareholder return of 17% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Games Workshop Group that investors should look into moving forward.

Switching gears from Games Workshop Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.