We Think Shareholders Are Less Likely To Approve A Large Pay Rise For PayPoint plc's (LON:PAY) CEO For Now

Key Insights

• PayPoint's Annual General Meeting to take place on 1st of August
• CEO Nick Wiles' total compensation includes salary of UK£495.0k
• The overall pay is 63% above the industry average
• PayPoint's EPS grew by 29% over the past three years while total shareholder return over the past three years was 36%

Under the guidance of CEO Nick Wiles, PayPoint plc (LON:PAY) has performed reasonably well recently. As shareholders go into the upcoming AGM on 1st of August, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for PayPoint

How Does Total Compensation For Nick Wiles Compare With Other Companies In The Industry?

Our data indicates that PayPoint plc has a market capitalization of UK£479m, and total annual CEO compensation was reported as UK£1.2m for the year to March 2024. That's a modest increase of 3.7% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£495k.

On examining similar-sized companies in the British Diversified Financial industry with market capitalizations between UK£310m and UK£1.2b, we discovered that the median CEO total compensation of that group was UK£748k. Hence, we can conclude that Nick Wiles is remunerated higher than the industry median. What's more, Nick Wiles holds UK£1.1m worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	UK£495k	UK£481k	41%
Other	UK£722k	UK£693k	59%
Total Compensation	UK£1.2m	UK£1.2m	100%

Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% is other remuneration. In PayPoint's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at PayPoint plc's Growth Numbers

PayPoint plc has seen its earnings per share (EPS) increase by 29% a year over the past three years. In the last year, its revenue is up 79%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast 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 PayPoint plc Been A Good Investment?

Most shareholders would probably be pleased with PayPoint plc for providing a total return of 36% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for PayPoint that investors should think about before committing capital to this stock.

Important note: PayPoint 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com