We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Cranswick plc's (LON:CWK) CEO For Now

Performance at Cranswick plc (LON:CWK) has been reasonably good and CEO Adam Couch has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 26 July 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Cranswick

Comparing Cranswick plc's CEO Compensation With the industry

Our data indicates that Cranswick plc has a market capitalization of UK£2.0b, and total annual CEO compensation was reported as UK£2.9m for the year to March 2021. That's a slight decrease of 3.1% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£669k.

On examining similar-sized companies in the industry with market capitalizations between UK£1.5b and UK£4.7b, we discovered that the median CEO total compensation of that group was UK£1.3m. This suggests that Adam Couch is paid more than the median for the industry. What's more, Adam Couch holds UK£6.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2021	2020	Proportion (2021)
Salary	UK£669k	UK£651k	23%
Other	UK£2.2m	UK£2.3m	77%
Total Compensation	UK£2.9m	UK£3.0m	100%

Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. Cranswick 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.

Cranswick plc's Growth

Cranswick plc's earnings per share (EPS) grew 8.6% per year over the last three years. In the last year, its revenue is up 14%.

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 Cranswick plc Been A Good Investment?

Cranswick plc has generated a total shareholder return of 23% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

Shareholders may want to check for free if Cranswick insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. 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.
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