Here's Why Shareholders May Want To Be Cautious With Increasing International Personal Finance plc's (LON:IPF) CEO Pay Packet

Key Insights

• International Personal Finance will host its Annual General Meeting on 2nd of May
• Salary of UK£581.0k is part of CEO Gerard Ryan's total remuneration
• The overall pay is 295% above the industry average
• International Personal Finance's EPS grew by 64% over the past three years while total shareholder return over the past three years was 15%

CEO Gerard Ryan has done a decent job of delivering relatively good performance at International Personal Finance plc (LON:IPF) recently. As shareholders go into the upcoming AGM on 2nd of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for International Personal Finance

Comparing International Personal Finance plc's CEO Compensation With The Industry

According to our data, International Personal Finance plc has a market capitalization of UK£241m, and paid its CEO total annual compensation worth UK£2.4m over the year to December 2023. We note that's an increase of 72% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£581k.

On comparing similar companies from the British Consumer Finance industry with market caps ranging from UK£160m to UK£642m, we found that the median CEO total compensation was UK£611k. This suggests that Gerard Ryan is paid more than the median for the industry. Furthermore, Gerard Ryan directly owns UK£2.0m worth of shares in the company.

Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. International Personal Finance sets aside a smaller share of compensation for salary, in comparison to the overall 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 International Personal Finance plc's Growth Numbers

Over the past three years, International Personal Finance plc has seen its earnings per share (EPS) grow by 64% per year. In the last year, its revenue is up 19%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has International Personal Finance plc Been A Good Investment?

International Personal Finance plc has generated a total shareholder return of 15% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for International Personal Finance (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Important note: International Personal Finance 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. 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.