Here's Why We Think H&T Group plc's (LON:HAT) CEO Compensation Looks Fair for the time being
Key Insights
- H&T Group's Annual General Meeting to take place on 15th of May
- Salary of UK£372.3k is part of CEO Chris Gillespie's total remuneration
- Total compensation is similar to the industry average
- H&T Group's total shareholder return over the past three years was 30% while its EPS grew by 49% over the past three years
Under the guidance of CEO Chris Gillespie, H&T Group plc (LON:HAT) has performed reasonably well 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 15th of May. Here is our take on why we think the CEO compensation looks appropriate.
See our latest analysis for H&T Group
Comparing H&T Group plc's CEO Compensation With The Industry
Our data indicates that H&T Group plc has a market capitalization of UK£183m, and total annual CEO compensation was reported as UK£586k for the year to December 2024. That is, the compensation was roughly the same as last year. In particular, the salary of UK£372.3k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the British Consumer Finance industry with market capitalizations ranging from UK£75m to UK£301m, the reported median CEO total compensation was UK£586k. This suggests that H&T Group remunerates its CEO largely in line with the industry average. Furthermore, Chris Gillespie directly owns UK£811k worth of shares in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | UK£372k | UK£372k | 64% |
| Other | UK£213k | UK£202k | 36% |
| Total Compensation | UK£586k | UK£575k | 100% |
On an industry level, around 73% of total compensation represents salary and 27% is other remuneration. It's interesting to note that H&T Group allocates a smaller portion of compensation to salary in comparison to the broader industry. 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 H&T Group plc's Growth Numbers
H&T Group plc has seen its earnings per share (EPS) increase by 49% a year over the past three years. In the last year, its revenue is up 20%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 H&T Group plc Been A Good Investment?
With a total shareholder return of 30% over three years, H&T Group plc shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
To Conclude...
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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for H&T Group that investors should be aware of in a dynamic business environment.
Switching gears from H&T 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.