We Think Shareholders Will Probably Be Generous With Glencore plc's (LON:GLEN) CEO Compensation

Key Insights

• Glencore's Annual General Meeting to take place on 29th of May
• CEO Gary Nagle's total compensation includes salary of US$1.85m
• Total compensation is similar to the industry average
• Glencore's EPS grew by 45% over the past three years while total shareholder return over the past three years was 90%

The performance at Glencore plc (LON:GLEN) has been quite strong recently and CEO Gary Nagle has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 29th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Glencore

How Does Total Compensation For Gary Nagle Compare With Other Companies In The Industry?

Our data indicates that Glencore plc has a market capitalization of UK£59b, and total annual CEO compensation was reported as US$5.8m for the year to December 2023. We note that's a small decrease of 3.9% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.9m.

For comparison, other companies in the British Metals and Mining industry with market capitalizations above UK£6.3b, reported a median total CEO compensation of US$4.6m. So it looks like Glencore compensates Gary Nagle in line with the median for the industry. Moreover, Gary Nagle also holds UK£9.7m worth of Glencore stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$1.9m	US$1.8m	32%
Other	US$4.0m	US$4.3m	68%
Total Compensation	US$5.8m	US$6.1m	100%

On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. Glencore pays a modest slice of remuneration through salary, as compared to the broader 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 Glencore plc's Growth Numbers

Glencore plc has seen its earnings per share (EPS) increase by 45% a year over the past three years. It saw its revenue drop 15% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Glencore plc Been A Good Investment?

Boasting a total shareholder return of 90% over three years, Glencore plc has done well by shareholders. 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.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 4 warning signs for Glencore that you should be aware of before investing.

Switching gears from Glencore, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.