What Can We Learn About Intermediate Capital Group's (LON:ICP) CEO Compensation?

This article will reflect on the compensation paid to Benoît Laurent Durteste who has served as CEO of Intermediate Capital Group plc (LON:ICP) since 2017. This analysis will also assess whether Intermediate Capital Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Intermediate Capital Group

Comparing Intermediate Capital Group plc's CEO Compensation With the industry

According to our data, Intermediate Capital Group plc has a market capitalization of UK£5.0b, and paid its CEO total annual compensation worth UK£5.9m over the year to March 2020. We note that's a decrease of 38% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£394k.

For comparison, other companies in the same industry with market capitalizations ranging between UK£2.9b and UK£8.7b had a median total CEO compensation of UK£2.7m. Accordingly, our analysis reveals that Intermediate Capital Group plc pays Benoît Laurent Durteste north of the industry median. Moreover, Benoît Laurent Durteste also holds UK£20m worth of Intermediate Capital Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 49% of total compensation represents salary and 51% is other remuneration. Intermediate Capital Group pays a modest slice of remuneration through salary, as compared 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.

A Look at Intermediate Capital Group plc's Growth Numbers

Intermediate Capital Group plc has reduced its earnings per share by 8.2% a year over the last three years. Its revenue is down 11% over the previous year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. 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 Intermediate Capital Group plc Been A Good Investment?

We think that the total shareholder return of 68%, over three years, would leave most Intermediate Capital Group plc shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

As we touched on above, Intermediate Capital Group plc is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. We feel that EPS have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So while we would not say that Benoît Laurent is generously paid, stockholders would want to see some EPS growth before agreeing that a raise is a good idea.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Intermediate Capital Group that investors should look into moving forward.

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.

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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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