Increases to CEO Compensation Might Be Put On Hold For Now at Revolution Bars Group plc (LON:RBG)

Key Insights

• Revolution Bars Group's Annual General Meeting to take place on 2nd of May
• Salary of UK£368.0k is part of CEO Rob Pitcher's total remuneration
• Total compensation is 185% above industry average
• Over the past three years, Revolution Bars Group's EPS grew by 91% and over the past three years, the total loss to shareholders 94%

The underwhelming share price performance of Revolution Bars Group plc (LON:RBG) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 2nd of May. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Revolution Bars Group

How Does Total Compensation For Rob Pitcher Compare With Other Companies In The Industry?

At the time of writing, our data shows that Revolution Bars Group plc has a market capitalization of UK£3.3m, and reported total annual CEO compensation of UK£610k for the year to July 2023. That's a notable decrease of 38% on last year. Notably, the salary which is UK£368.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the British Hospitality industry with market capitalizations below UK£160m, we found that the median total CEO compensation was UK£214k. Hence, we can conclude that Rob Pitcher is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	UK£368k	UK£358k	60%
Other	UK£242k	UK£622k	40%
Total Compensation	UK£610k	UK£980k	100%

On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. Although there is a difference in how total compensation is set, Revolution Bars 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 Revolution Bars Group plc's Growth Numbers

Over the past three years, Revolution Bars Group plc has seen its earnings per share (EPS) grow by 91% per year. It achieved revenue growth of 11% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and 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 Revolution Bars Group plc Been A Good Investment?

The return of -94% over three years would not have pleased Revolution Bars Group plc shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

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. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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.

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 3 warning signs for Revolution Bars Group that investors should look into moving forward.

Important note: Revolution Bars 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.