Shareholders May Not Be So Generous With 3i Group plc's (LON:III) CEO Compensation And Here's Why

Key Insights

• 3i Group's Annual General Meeting to take place on 26th of June
• Salary of UK£744.0k is part of CEO Simon Borrows's total remuneration
• The overall pay is 186% above the industry average
• Over the past three years, 3i Group's EPS grew by 7.9% and over the past three years, the total shareholder return was 314%

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Performance at 3i Group plc (LON:III) has been reasonably good and CEO Simon Borrows has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 26th of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for 3i Group

Comparing 3i Group plc's CEO Compensation With The Industry

At the time of writing, our data shows that 3i Group plc has a market capitalization of UK£40b, and reported total annual CEO compensation of UK£12m for the year to March 2025. That's a notable increase of 26% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£744k.

In comparison with other companies in the British Capital Markets industry with market capitalizations over UK£6.0b, the reported median total CEO compensation was UK£4.2m. Hence, we can conclude that Simon Borrows is remunerated higher than the industry median. Moreover, Simon Borrows also holds UK£690m worth of 3i 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, around 43% of total compensation represents salary and 57% is other remuneration. In 3i Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

3i Group plc's Growth

3i Group plc's earnings per share (EPS) grew 7.9% per year over the last three years. In the last year, its revenue is up 29%.

It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has 3i Group plc Been A Good Investment?

Boasting a total shareholder return of 314% over three years, 3i Group plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

Shareholders may want to check for free if 3i Group insiders are buying or selling shares.

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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.