It's Unlikely That The CEO Of The Brighton Pier Group PLC (LON:PIER) Will See A Huge Pay Rise This Year

In the past three years, shareholders of The Brighton Pier Group PLC (LON:PIER) have seen a loss on their investment. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 15 December 2021. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Brighton Pier Group

How Does Total Compensation For Anne Ackord Compare With Other Companies In The Industry?

Our data indicates that The Brighton Pier Group PLC has a market capitalization of UK£27m, and total annual CEO compensation was reported as UK£176k for the year to June 2021. That's just a smallish increase of 3.5% on last year. Notably, the salary which is UK£145.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below UK£151m, we found that the median total CEO compensation was UK£180k. So it looks like Brighton Pier Group compensates Anne Ackord in line with the median for the industry.

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. Brighton Pier Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at The Brighton Pier Group PLC's Growth Numbers

The Brighton Pier Group PLC's earnings per share (EPS) grew 30% per year over the last three years. In the last year, its revenue is down 40%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 The Brighton Pier Group PLC Been A Good Investment?

Since shareholders would have lost about 2.7% over three years, some The Brighton Pier Group PLC investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 4 warning signs for Brighton Pier Group that you should be aware of before investing.

Important note: Brighton Pier 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.

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

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.