What Can We Conclude About Accrol Group Holdings' (LON:ACRL) CEO Pay?

This article will reflect on the compensation paid to Gareth Jenkins who has served as CEO of Accrol Group Holdings plc (LON:ACRL) since 2017. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Accrol Group Holdings.

View our latest analysis for Accrol Group Holdings

How Does Total Compensation For Gareth Jenkins Compare With Other Companies In The Industry?

According to our data, Accrol Group Holdings plc has a market capitalization of UK£195m, and paid its CEO total annual compensation worth UK£613k over the year to April 2020. Notably, that's an increase of 34% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£302k.

On examining similar-sized companies in the industry with market capitalizations between UK£71m and UK£284m, we discovered that the median CEO total compensation of that group was UK£401k. Hence, we can conclude that Gareth Jenkins is remunerated higher than the industry median. Moreover, Gareth Jenkins also holds UK£2.6m worth of Accrol Group Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 41% of total compensation out of all the companies we analyzed, while other remuneration made up 59% of the pie. Accrol Group Holdings is paying a higher share of its remuneration through a 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

Over the past three years, Accrol Group Holdings plc has seen its earnings per share (EPS) grow by 64% per year. It achieved revenue growth of 4.2% 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 Accrol Group Holdings plc Been A Good Investment?

We think that the total shareholder return of 85%, over three years, would leave most Accrol Group Holdings plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As we noted earlier, Accrol Group Holdings pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Gareth's performance creates value for the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for Accrol Group Holdings you should be aware of, and 2 of them are potentially serious.

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. 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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