Most Shareholders Will Probably Agree With Sancus Lending Group Limited's (LON:LEND) CEO Compensation

Key Insights

• Sancus Lending Group will host its Annual General Meeting on 16th of August
• Salary of UK£220.0k is part of CEO Rory Jonathan Mepham's total remuneration
• The overall pay is 52% below the industry average
• Over the past three years, Sancus Lending Group's EPS grew by 20% and over the past three years, the total loss to shareholders 86%

Shareholders may be wondering what CEO Rory Jonathan Mepham plans to do to improve the less than great performance at Sancus Lending Group Limited (LON:LEND) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 16th of August. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

See our latest analysis for Sancus Lending Group

Comparing Sancus Lending Group Limited's CEO Compensation With The Industry

According to our data, Sancus Lending Group Limited has a market capitalization of UK£2.6m, and paid its CEO total annual compensation worth UK£231k over the year to December 2023. There was no change in the compensation compared to last year. Notably, the salary which is UK£220.0k, represents most of the total compensation being paid.

In comparison with other companies in the British Diversified Financial industry with market capitalizations under UK£157m, the reported median total CEO compensation was UK£485k. This suggests that Rory Jonathan Mepham is paid below the industry median.

Component	2023	2022	Proportion (2023)
Salary	UK£220k	UK£220k	95%
Other	UK£11k	UK£11k	5%
Total Compensation	UK£231k	UK£231k	100%

On an industry level, roughly 53% of total compensation represents salary and 47% is other remuneration. Sancus Lending Group pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Sancus Lending Group Limited's Growth Numbers

Sancus Lending Group Limited has seen its earnings per share (EPS) increase by 20% a year over the past three years. Its revenue is down 22% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sancus Lending Group Limited Been A Good Investment?

Few Sancus Lending Group Limited shareholders would feel satisfied with the return of -86% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Rory Jonathan receives almost all of their compensation through a salary. The loss to shareholders over the past three years is certainly concerning. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 4 warning signs for Sancus Lending Group that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.