We Think Shareholders Are Less Likely To Approve A Pay Rise For Sabre Insurance Group plc's (LON:SBRE) CEO For Now

Key Insights

• Sabre Insurance Group will host its Annual General Meeting on 22nd of May
• Salary of UK£504.0k is part of CEO Geoff Carter's total remuneration
• Total compensation is similar to the industry average
• Sabre Insurance Group's three-year loss to shareholders was 24% while its EPS grew by 6.2% over the past three years

Our free stock report includes 1 warning sign investors should be aware of before investing in Sabre Insurance Group. Read for free now.

The underwhelming share price performance of Sabre Insurance Group plc (LON:SBRE) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 22nd of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Sabre Insurance Group

How Does Total Compensation For Geoff Carter Compare With Other Companies In The Industry?

Our data indicates that Sabre Insurance Group plc has a market capitalization of UK£335m, and total annual CEO compensation was reported as UK£1.3m for the year to December 2024. That's a notable increase of 29% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£504k.

For comparison, other companies in the British Insurance industry with market capitalizations ranging between UK£151m and UK£603m had a median total CEO compensation of UK£1.3m. So it looks like Sabre Insurance Group compensates Geoff Carter in line with the median for the industry. Furthermore, Geoff Carter directly owns UK£2.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	UK£504k	UK£477k	40%
Other	UK£751k	UK£495k	60%
Total Compensation	UK£1.3m	UK£972k	100%

On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. Sabre Insurance Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Sabre Insurance Group plc's Growth

Sabre Insurance Group plc's earnings per share (EPS) grew 6.2% per year over the last three years. In the last year, its revenue is up 39%.

We like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. 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 Sabre Insurance Group plc Been A Good Investment?

Since shareholders would have lost about 24% over three years, some Sabre Insurance Group plc investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Sabre Insurance Group that you should be aware of before investing.

Important note: Sabre Insurance Group 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.