Increases to CEO Compensation Might Be Put On Hold For Now at TP ICAP Group PLC (LON:TCAP)

Key Insights

• TP ICAP Group's Annual General Meeting to take place on 15th of May
• Total pay for CEO Nicolas Noel Breteau includes UK£785.0k salary
• The overall pay is 131% above the industry average
• TP ICAP Group's EPS declined by 18% over the past three years while total shareholder return over the past three years was 25%

Despite positive share price growth of 25% for TP ICAP Group PLC (LON:TCAP) over the last few years, earnings growth has been disappointing, which suggests something is amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 15th of May. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

View our latest analysis for TP ICAP Group

Comparing TP ICAP Group PLC's CEO Compensation With The Industry

Our data indicates that TP ICAP Group PLC has a market capitalization of UK£1.7b, and total annual CEO compensation was reported as UK£3.1m for the year to December 2023. That's a notable increase of 61% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£785k.

For comparison, other companies in the British Capital Markets industry with market capitalizations ranging between UK£800m and UK£2.6b had a median total CEO compensation of UK£1.3m. Accordingly, our analysis reveals that TP ICAP Group PLC pays Nicolas Noel Breteau north of the industry median. Moreover, Nicolas Noel Breteau also holds UK£1.4m worth of TP ICAP Group stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	UK£785k	UK£750k	25%
Other	UK£2.3m	UK£1.2m	75%
Total Compensation	UK£3.1m	UK£1.9m	100%

On an industry level, around 53% of total compensation represents salary and 47% is other remuneration. TP ICAP Group 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 TP ICAP Group PLC's Growth Numbers

TP ICAP Group PLC has reduced its earnings per share by 18% a year over the last three years. Its revenue is up 3.4% over the last year.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has TP ICAP Group PLC Been A Good Investment?

With a total shareholder return of 25% over three years, TP ICAP Group PLC shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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 3 warning signs for TP ICAP Group that investors should think about before committing capital to this stock.

Switching gears from TP ICAP Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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

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.