Should Shareholders Reconsider PZ Cussons plc's (LON:PZC) CEO Compensation Package?

Key Insights

• PZ Cussons to hold its Annual General Meeting on 20th of November
• Salary of UK£659.2k is part of CEO Jonathan Myers's total remuneration
• Total compensation is 579% above industry average
• PZ Cussons' EPS declined by 90% over the past three years while total shareholder loss over the past three years was 62%

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Shareholders will probably not be too impressed with the underwhelming results at PZ Cussons plc (LON:PZC) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 20th of November. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for PZ Cussons

How Does Total Compensation For Jonathan Myers Compare With Other Companies In The Industry?

According to our data, PZ Cussons plc has a market capitalization of UK£288m, and paid its CEO total annual compensation worth UK£1.5m over the year to May 2025. That's a notable increase of 10% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£659k.

On comparing similar companies from the British Personal Products industry with market caps ranging from UK£151m to UK£605m, we found that the median CEO total compensation was UK£228k. Accordingly, our analysis reveals that PZ Cussons plc pays Jonathan Myers north of the industry median. Furthermore, Jonathan Myers directly owns UK£256k worth of shares in the company.

On an industry level, roughly 66% of total compensation represents salary and 34% is other remuneration. PZ Cussons 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.

PZ Cussons plc's Growth

Over the last three years, PZ Cussons plc has shrunk its earnings per share by 90% per year. In the last year, its revenue is down 2.7%.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 PZ Cussons plc Been A Good Investment?

Few PZ Cussons plc shareholders would feel satisfied with the return of -62% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 2 which make us uncomfortable) in PZ Cussons we think you should know about.

Important note: PZ Cussons 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.