It's Unlikely That Accrol Group Holdings plc's (LON:ACRL) CEO Will See A Huge Pay Rise This Year

CEO Gareth Jenkins has done a decent job of delivering relatively good performance at Accrol Group Holdings plc (LON:ACRL) recently. As shareholders go into the upcoming AGM on 24 September 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Accrol Group Holdings

Comparing Accrol Group Holdings plc's CEO Compensation With the industry

According to our data, Accrol Group Holdings plc has a market capitalization of UK£156m, and paid its CEO total annual compensation worth UK£838k over the year to April 2021. Notably, that's an increase of 37% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£375k.

For comparison, other companies in the same industry with market capitalizations ranging between UK£73m and UK£291m had a median total CEO compensation of UK£493k. Accordingly, our analysis reveals that Accrol Group Holdings plc pays Gareth Jenkins north of the industry median. What's more, Gareth Jenkins holds UK£2.6m 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£375k	UK£302k	45%
Other	UK£463k	UK£311k	55%
Total Compensation	UK£838k	UK£613k	100%

Talking in terms of the industry, salary represented approximately 51% of total compensation out of all the companies we analyzed, while other remuneration made up 49% of the pie. Accrol Group Holdings 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 Accrol Group Holdings plc's Growth Numbers

Accrol Group Holdings plc has seen its earnings per share (EPS) increase by 104% a year over the past three years. In the last year, its revenue is up 1.4%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Accrol Group Holdings plc Been A Good Investment?

We think that the total shareholder return of 153%, over three years, would leave most Accrol Group Holdings 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...

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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Accrol Group Holdings that you should be aware of before investing.

Important note: Accrol Group Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.
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