London Stock Exchange Group plc's (LON:LSEG) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• London Stock Exchange Group will host its Annual General Meeting on 1st of May
• CEO David Schwimmer's total compensation includes salary of UK£1.38m
• Total compensation is 89% above industry average
• Over the past three years, London Stock Exchange Group's EPS grew by 15% and over the past three years, the total shareholder return was 51%

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Performance at London Stock Exchange Group plc (LON:LSEG) has been reasonably good and CEO David Schwimmer 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 1st of May. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for London Stock Exchange Group

How Does Total Compensation For David Schwimmer Compare With Other Companies In The Industry?

At the time of writing, our data shows that London Stock Exchange Group plc has a market capitalization of UK£61b, and reported total annual CEO compensation of UK£7.9m for the year to December 2024. That's a notable increase of 46% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£1.4m.

For comparison, other companies in the British Capital Markets industry with market capitalizations above UK£6.0b, reported a median total CEO compensation of UK£4.2m. Accordingly, our analysis reveals that London Stock Exchange Group plc pays David Schwimmer north of the industry median. Moreover, David Schwimmer also holds UK£14m worth of London Stock Exchange 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 42% of total compensation represents salary and 58% is other remuneration. It's interesting to note that London Stock Exchange Group allocates a smaller portion of compensation to salary in comparison 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.

London Stock Exchange Group plc's Growth

London Stock Exchange Group plc has seen its earnings per share (EPS) increase by 15% a year over the past three years. Its revenue is up 5.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 London Stock Exchange Group plc Been A Good Investment?

Most shareholders would probably be pleased with London Stock Exchange Group plc for providing a total return of 51% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for London Stock Exchange Group that investors should think about before committing capital to this stock.

Important note: London Stock Exchange 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. 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.