It's Unlikely That The CEO Of Benchmark Holdings plc (LON:BMK) Will See A Huge Pay Rise This Year

In the past three years, shareholders of Benchmark Holdings plc (LON:BMK) have seen a loss on their investment. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 16 February 2023. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Benchmark Holdings

Comparing Benchmark Holdings plc's CEO Compensation With The Industry

At the time of writing, our data shows that Benchmark Holdings plc has a market capitalization of UK£273m, and reported total annual CEO compensation of UK£841k for the year to September 2022. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£410k.

On comparing similar companies from the British Food industry with market caps ranging from UK£165m to UK£660m, we found that the median CEO total compensation was UK£832k. This suggests that Benchmark Holdings remunerates its CEO largely in line with the industry average. Moreover, Trond Williksen also holds UK£100k worth of Benchmark Holdings stock directly under their own name.

Component	2022	2021	Proportion (2022)
Salary	UK£410k	UK£403k	49%
Other	UK£431k	UK£414k	51%
Total Compensation	UK£841k	UK£818k	100%

On an industry level, around 48% of total compensation represents salary and 52% is other remuneration. There isn't a significant difference between Benchmark Holdings and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Benchmark Holdings plc's Growth

Over the past three years, Benchmark Holdings plc has seen its earnings per share (EPS) grow by 54% per year. It achieved revenue growth of 27% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Benchmark Holdings plc Been A Good Investment?

Since shareholders would have lost about 13% over three years, some Benchmark Holdings plc investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Benchmark Holdings 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.