Here's Why Shareholders May Want To Be Cautious With Increasing Cadogan Energy Solutions PLC's (LON:CAD) CEO Pay Packet

Key Insights

• Cadogan Energy Solutions to hold its Annual General Meeting on 20th of June
• Total pay for CEO Fady Khallouf includes US$467.3k salary
• The total compensation is 30% higher than the average for the industry
• Cadogan Energy Solutions' EPS grew by 51% over the past three years while total shareholder return over the past three years was 57%

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Performance at Cadogan Energy Solutions PLC (LON:CAD) has been reasonably good and CEO Fady Khallouf 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 20th of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Cadogan Energy Solutions

Comparing Cadogan Energy Solutions PLC's CEO Compensation With The Industry

According to our data, Cadogan Energy Solutions PLC has a market capitalization of UK£11m, and paid its CEO total annual compensation worth US$569k over the year to December 2024. That's a slight decrease of 5.0% on the prior year. In particular, the salary of US$467.3k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the British Oil and Gas industry with market capitalizations below UK£147m, reported a median total CEO compensation of US$436k. Accordingly, our analysis reveals that Cadogan Energy Solutions PLC pays Fady Khallouf north of the industry median. What's more, Fady Khallouf holds UK£1.0m worth of shares in the company in their own name.

On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. It's interesting to note that Cadogan Energy Solutions pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Cadogan Energy Solutions PLC's Growth

Over the past three years, Cadogan Energy Solutions PLC has seen its earnings per share (EPS) grow by 51% per year. It achieved revenue growth of 21% over the last year.

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. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Cadogan Energy Solutions PLC Been A Good Investment?

We think that the total shareholder return of 57%, over three years, would leave most Cadogan Energy Solutions PLC shareholders smiling. 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, 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Cadogan Energy Solutions that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.