Here's Why Shareholders May Want To Be Cautious With Increasing ME Group International plc's (LON:MEGP) CEO Pay Packet

Key Insights

• ME Group International will host its Annual General Meeting on 25th of April
• CEO Serge Crasnianski's total compensation includes salary of UK£560.2k
• Total compensation is 236% above industry average
• Over the past three years, ME Group International's EPS grew by 36% and over the past three years, the total shareholder return was 231%

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Under the guidance of CEO Serge Crasnianski, ME Group International plc (LON:MEGP) has performed reasonably well recently. As shareholders go into the upcoming AGM on 25th 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 will still be cautious of paying the CEO excessively.

Check out our latest analysis for ME Group International

Comparing ME Group International plc's CEO Compensation With The Industry

According to our data, ME Group International plc has a market capitalization of UK£735m, and paid its CEO total annual compensation worth UK£1.5m over the year to October 2024. Notably, that's a decrease of 33% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£560k.

In comparison with other companies in the British Consumer Services industry with market capitalizations ranging from UK£301m to UK£1.2b, the reported median CEO total compensation was UK£452k. This suggests that Serge Crasnianski is paid more than the median for the industry. Furthermore, Serge Crasnianski directly owns UK£269m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	UK£560k	UK£560k	37%
Other	UK£958k	UK£1.7m	63%
Total Compensation	UK£1.5m	UK£2.3m	100%

On an industry level, around 33% of total compensation represents salary and 67% is other remuneration. ME Group International is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at ME Group International plc's Growth Numbers

ME Group International plc's earnings per share (EPS) grew 36% per year over the last three years. It achieved revenue growth of 3.4% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ME Group International plc Been A Good Investment?

Most shareholders would probably be pleased with ME Group International plc for providing a total return of 231% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for ME Group International that investors should be aware of in a dynamic business environment.

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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.