Increases to CEO Compensation Might Be Put On Hold For Now at Gresham House plc (LON:GHE)

CEO Tony Dalwood has done a decent job of delivering relatively good performance at Gresham House plc (LON:GHE) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 12 May 2021. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Gresham House

How Does Total Compensation For Tony Dalwood Compare With Other Companies In The Industry?

According to our data, Gresham House plc has a market capitalization of UK£252m, and paid its CEO total annual compensation worth UK£1.1m over the year to December 2020. Notably, that's an increase of 43% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£375k.

On examining similar-sized companies in the industry with market capitalizations between UK£144m and UK£575m, we discovered that the median CEO total compensation of that group was UK£592k. This suggests that Tony Dalwood is paid more than the median for the industry. Moreover, Tony Dalwood also holds UK£7.1m worth of Gresham House stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	UK£375k	UK£258k	36%
Other	UK£676k	UK£479k	64%
Total Compensation	UK£1.1m	UK£737k	100%

Speaking on an industry level, nearly 49% of total compensation represents salary, while the remainder of 51% is other remuneration. In Gresham House's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Gresham House plc's Growth

Over the past three years, Gresham House plc has seen its earnings per share (EPS) grow by 59% per year. Its revenue is up 24% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing 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 Gresham House plc Been A Good Investment?

Most shareholders would probably be pleased with Gresham House plc for providing a total return of 103% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Gresham House that investors should be aware of in a dynamic business environment.

Switching gears from Gresham House, 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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