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

Key Insights

• TP ICAP Group to hold its Annual General Meeting on 14th of May
• CEO Nicolas Noel Breteau's total compensation includes salary of UK£800.0k
• Total compensation is 132% above industry average
• TP ICAP Group's total shareholder return over the past three years was 183% while its EPS grew by 222% over the past three years

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Under the guidance of CEO Nicolas Noel Breteau, TP ICAP Group PLC (LON:TCAP) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 14th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for TP ICAP Group

How Does Total Compensation For Nicolas Noel Breteau Compare With Other Companies In The Industry?

At the time of writing, our data shows that TP ICAP Group PLC has a market capitalization of UK£2.0b, and reported total annual CEO compensation of UK£4.9m for the year to December 2024. That's a notable increase of 49% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£800k.

On comparing similar companies from the British Capital Markets industry with market caps ranging from UK£1.5b to UK£4.8b, we found that the median CEO total compensation was UK£2.1m. Hence, we can conclude that Nicolas Noel Breteau is remunerated higher than the industry median. Furthermore, Nicolas Noel Breteau directly owns UK£2.4m worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	UK£800k	UK£785k	16%
Other	UK£4.1m	UK£2.5m	84%
Total Compensation	UK£4.9m	UK£3.3m	100%

Talking in terms of the industry, salary represented approximately 42% of total compensation out of all the companies we analyzed, while other remuneration made up 58% of the pie. TP ICAP Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

TP ICAP Group PLC's Growth

Over the past three years, TP ICAP Group PLC has seen its earnings per share (EPS) grow by 222% per year. In the last year, its revenue is up 3.1%.

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. 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?

Most shareholders would probably be pleased with TP ICAP Group PLC for providing a total return of 183% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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. 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.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for TP ICAP Group that investors should look into moving forward.

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.

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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.