CVS Group plc's (LON:CVSG) CEO Looks Like They Deserve Their Pay Packet

We have been pretty impressed with the performance at CVS Group plc (LON:CVSG) recently and CEO Richard William Fairman deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 23 November 2022. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out the opportunities and risks within the GB Healthcare industry.

How Does Total Compensation For Richard William Fairman Compare With Other Companies In The Industry?

Our data indicates that CVS Group plc has a market capitalization of UK£1.4b, and total annual CEO compensation was reported as UK£1.7m for the year to June 2022. That's a fairly small increase of 3.1% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£412k.

On examining similar-sized companies in the industry with market capitalizations between UK£842m and UK£2.7b, we discovered that the median CEO total compensation of that group was UK£1.5m. From this we gather that Richard William Fairman is paid around the median for CEOs in the industry. Moreover, Richard William Fairman also holds UK£573k worth of CVS Group stock directly under their own name.

Component	2022	2021	Proportion (2022)
Salary	UK£412k	UK£404k	25%
Other	UK£1.3m	UK£1.2m	75%
Total Compensation	UK£1.7m	UK£1.6m	100%

Speaking on an industry level, nearly 52% of total compensation represents salary, while the remainder of 48% is other remuneration. CVS Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

CVS Group plc's Growth

CVS Group plc has seen its earnings per share (EPS) increase by 46% a year over the past three years. It achieved revenue growth of 8.6% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has CVS Group plc Been A Good Investment?

We think that the total shareholder return of 89%, over three years, would leave most CVS Group plc shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CVS Group (free visualization of insider trades).

Switching gears from CVS 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.

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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.