We Think Some Shareholders May Hesitate To Increase Ebiquity plc's (LON:EBQ) CEO Compensation

Key Insights

• Ebiquity's Annual General Meeting to take place on 11th of June
• Salary of UK£387.0k is part of CEO Nick Waters's total remuneration
• Total compensation is 195% above industry average
• Over the past three years, Ebiquity's EPS grew by 11% and over the past three years, the total loss to shareholders 23%

In the past three years, the share price of Ebiquity plc (LON:EBQ) has struggled to grow and now shareholders are sitting on a loss. 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 11th of June 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. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Ebiquity

Comparing Ebiquity plc's CEO Compensation With The Industry

At the time of writing, our data shows that Ebiquity plc has a market capitalization of UK£58m, and reported total annual CEO compensation of UK£864k for the year to December 2023. That's a notable increase of 61% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£387k.

On comparing similar-sized companies in the British Media industry with market capitalizations below UK£156m, we found that the median total CEO compensation was UK£293k. Accordingly, our analysis reveals that Ebiquity plc pays Nick Waters north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	UK£387k	UK£370k	45%
Other	UK£477k	UK£168k	55%
Total Compensation	UK£864k	UK£538k	100%

On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. Although there is a difference in how total compensation is set, Ebiquity more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Ebiquity plc's Growth

Ebiquity plc's earnings per share (EPS) grew 11% per year over the last three years. In the last year, its revenue is up 6.8%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Ebiquity plc Been A Good Investment?

Given the total shareholder loss of 23% over three years, many shareholders in Ebiquity 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...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. 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.

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 1 warning sign for Ebiquity that you should be aware of before investing.

Switching gears from Ebiquity, 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.