Shareholders May Be More Conservative With CareTech Holdings PLC's (LON:CTH) CEO Compensation For Now

Under the guidance of CEO Haroon Sheikh, CareTech Holdings PLC (LON:CTH) has performed reasonably well recently. 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 08 March 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for CareTech Holdings

Comparing CareTech Holdings PLC's CEO Compensation With the industry

According to our data, CareTech Holdings PLC has a market capitalization of UK£666m, and paid its CEO total annual compensation worth UK£1.1m over the year to September 2021. Notably, that's an increase of 15% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£450k.

On comparing similar companies from the same industry with market caps ranging from UK£300m to UK£1.2b, we found that the median CEO total compensation was UK£637k. Hence, we can conclude that Haroon Sheikh is remunerated higher than the industry median.

Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. CareTech Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

CareTech Holdings PLC's Growth

CareTech Holdings PLC has seen its earnings per share (EPS) increase by 26% a year over the past three years. It achieved revenue growth of 14% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CareTech Holdings PLC Been A Good Investment?

Boasting a total shareholder return of 82% over three years, CareTech Holdings PLC has done well by shareholders. 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, 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.

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 did our research and spotted 1 warning sign for CareTech Holdings that investors should look into moving forward.

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.