Increases to WH Ireland Group plc's (LON:WHI) CEO Compensation Might Cool off for now

The underwhelming share price performance of WH Ireland Group plc (LON:WHI) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 12 August 2021. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for WH Ireland Group

Comparing WH Ireland Group plc's CEO Compensation With the industry

According to our data, WH Ireland Group plc has a market capitalization of UK£34m, and paid its CEO total annual compensation worth UK£381k over the year to March 2021. That's a slight decrease of 3.7% on the prior year. We note that the salary portion, which stands at UK£266.7k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under UK£144m, the reported median total CEO compensation was UK£173k. This suggests that Phillip Wale is paid more than the median for the industry. What's more, Phillip Wale holds UK£92k worth of shares in the company in their own name.

Component	2021	2020	Proportion (2021)
Salary	UK£267k	UK£250k	70%
Other	UK£115k	UK£146k	30%
Total Compensation	UK£381k	UK£396k	100%

Talking in terms of the industry, salary represented approximately 51% of total compensation out of all the companies we analyzed, while other remuneration made up 49% of the pie. It's interesting to note that WH Ireland Group pays out a greater portion of remuneration through salary, compared to the 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 WH Ireland Group plc's Growth Numbers

Over the past three years, WH Ireland Group plc has seen its earnings per share (EPS) grow by 44% per year. It achieved revenue growth of 37% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has WH Ireland Group plc Been A Good Investment?

The return of -49% over three years would not have pleased WH Ireland Group plc shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 3 warning signs for WH Ireland Group that investors should look into moving forward.

Important note: WH Ireland Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. 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.
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