Most Shareholders Will Probably Agree With Wynnstay Group Plc's (LON:WYN) CEO Compensation

Performance at Wynnstay Group Plc (LON:WYN) has been reasonably good and CEO Gareth Davies 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 22 February 2022. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Wynnstay Group

How Does Total Compensation For Gareth Davies Compare With Other Companies In The Industry?

According to our data, Wynnstay Group Plc has a market capitalization of UK£110m, and paid its CEO total annual compensation worth UK£356k over the year to October 2021. We note that's an increase of 32% above last year. Notably, the salary which is UK£327.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below UK£148m, we found that the median total CEO compensation was UK£356k. From this we gather that Gareth Davies is paid around the median for CEOs in the industry. Furthermore, Gareth Davies directly owns UK£177k worth of shares in the company.

Component	2021	2020	Proportion (2021)
Salary	UK£327k	UK£250k	92%
Other	UK£29k	UK£20k	8%
Total Compensation	UK£356k	UK£270k	100%

On an industry level, roughly 53% of total compensation represents salary and 47% is other remuneration. According to our research, Wynnstay Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Wynnstay Group Plc's Growth

Wynnstay Group Plc has seen its earnings per share (EPS) increase by 4.0% a year over the past three years. In the last year, its revenue is up 16%.

We think the revenue growth is good. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Wynnstay Group Plc Been A Good Investment?

We think that the total shareholder return of 47%, over three years, would leave most Wynnstay Group Plc shareholders smiling. 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, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Wynnstay Group that investors should look into moving forward.

Switching gears from Wynnstay 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.