Vector Capital Plc's (LON:VCAP) CEO Will Probably Struggle To See A Pay Rise This Year

Key Insights

• Vector Capital will host its Annual General Meeting on 16th of May
• Total pay for CEO Agam Jain includes UK£87.5k salary
• The overall pay is 80% below the industry average
• Vector Capital's EPS declined by 14% over the past three years while total shareholder loss over the past three years was 23%

Performance at Vector Capital Plc (LON:VCAP) has not been particularly rosy recently and shareholders will likely be holding CEO Agam Jain and the board accountable for this. At the upcoming AGM on 16th of May, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

Check out our latest analysis for Vector Capital

How Does Total Compensation For Agam Jain Compare With Other Companies In The Industry?

According to our data, Vector Capital Plc has a market capitalization of UK£15m, and paid its CEO total annual compensation worth UK£108k over the year to December 2023. Notably, that's a decrease of 10% over the year before. We note that the salary portion, which stands at UK£87.5k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the British Diversified Financial industry with market capitalizations under UK£160m, the reported median total CEO compensation was UK£539k. In other words, Vector Capital pays its CEO lower than the industry median. Furthermore, Agam Jain directly owns UK£11m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	UK£88k	UK£100k	81%
Other	UK£20k	UK£20k	19%
Total Compensation	UK£108k	UK£120k	100%

On an industry level, around 48% of total compensation represents salary and 52% is other remuneration. Vector Capital is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Vector Capital Plc's Growth Numbers

Over the last three years, Vector Capital Plc has shrunk its earnings per share by 14% per year. It saw its revenue drop 3.6% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Vector Capital Plc Been A Good Investment?

With a three year total loss of 23% for the shareholders, Vector Capital Plc would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Vector Capital you should be aware of, and 1 of them makes us a bit uncomfortable.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.