Shareholders May Not Be So Generous With Celtic plc's (LON:CCP) CEO Compensation And Here's Why

Key Insights

• Celtic's Annual General Meeting to take place on 22nd of November
• Total pay for CEO Michael Gordon Nicholson includes UK£489.3k salary
• The total compensation is 83% higher than the average for the industry
• Celtic's EPS grew by 56% over the past three years while total shareholder return over the past three years was 71%

Under the guidance of CEO Michael Gordon Nicholson, Celtic plc (LON:CCP) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 22nd of November. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Celtic

Comparing Celtic plc's CEO Compensation With The Industry

Our data indicates that Celtic plc has a market capitalization of UK£154m, and total annual CEO compensation was reported as UK£836k for the year to June 2024. We note that's an increase of 17% above last year. In particular, the salary of UK£489.3k, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar companies from the British Entertainment industry with market caps ranging from UK£79m to UK£316m, we found that the median CEO total compensation was UK£456k. This suggests that Michael Gordon Nicholson is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	UK£489k	UK£475k	58%
Other	UK£347k	UK£237k	42%
Total Compensation	UK£836k	UK£712k	100%

Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. Celtic pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Celtic plc's Growth Numbers

Over the past three years, Celtic plc has seen its earnings per share (EPS) grow by 56% per year. In the last year, its revenue is up 3.9%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Celtic plc Been A Good Investment?

Most shareholders would probably be pleased with Celtic plc for providing a total return of 71% over three years. 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.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which is significant) in Celtic we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.