Most Shareholders Will Probably Agree With CVS Group plc's (LON:CVSG) CEO Compensation

Key Insights

• CVS Group's Annual General Meeting to take place on 29th of November
• Salary of UK£430.0k is part of CEO Richard William Fairman's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, CVS Group's EPS grew by 94% and over the past three years, the total shareholder return was 14%

CEO Richard William Fairman has done a decent job of delivering relatively good performance at CVS Group plc (LON:CVSG) 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 29th of November. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for CVS Group

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

According to our data, CVS Group plc has a market capitalization of UK£1.1b, and paid its CEO total annual compensation worth UK£1.7m over the year to June 2023. That's slightly lower by 3.7% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£430k.

For comparison, other companies in the British Healthcare industry with market capitalizations ranging between UK£802m and UK£2.6b had a median total CEO compensation of UK£2.0m. 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£859k worth of CVS Group stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	UK£430k	UK£412k	25%
Other	UK£1.3m	UK£1.4m	75%
Total Compensation	UK£1.7m	UK£1.8m	100%

Speaking on an industry level, nearly 83% of total compensation represents salary, while the remainder of 17% is other remuneration. CVS Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at CVS Group plc's Growth Numbers

Over the past three years, CVS Group plc has seen its earnings per share (EPS) grow by 94% per year. Its revenue is up 9.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CVS Group plc Been A Good Investment?

CVS Group plc has served shareholders reasonably well, with a total return of 14% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same 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.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CVS Group.

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. 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.