James Cropper PLC's (LON:CRPR) CEO Might Not Expect Shareholders To Be So Generous This Year

The results at James Cropper PLC (LON:CRPR) have been quite disappointing recently and CEO Phil Wild bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 28 July 2021. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for James Cropper

Comparing James Cropper PLC's CEO Compensation With the industry

According to our data, James Cropper PLC has a market capitalization of UK£138m, and paid its CEO total annual compensation worth UK£254k over the year to March 2021. We note that's a decrease of 15% compared to last year. Notably, the salary which is UK£204.0k, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between UK£73m and UK£292m had a median total CEO compensation of UK£254k. From this we gather that Phil Wild is paid around the median for CEOs in the industry. Furthermore, Phil Wild directly owns UK£371k worth of shares in the company.

Component	2021	2020	Proportion (2021)
Salary	UK£204k	UK£204k	80%
Other	UK£50k	UK£95k	20%
Total Compensation	UK£254k	UK£299k	100%

On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. It's interesting to note that James Cropper pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

James Cropper PLC's Growth

Over the last three years, James Cropper PLC has shrunk its earnings per share by 28% per year. In the last year, its revenue is down 25%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 James Cropper PLC Been A Good Investment?

Given the total shareholder loss of 10% over three years, many shareholders in James Cropper PLC are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for James Cropper that investors should think about before committing capital to this stock.

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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