Increases to CEO Compensation Might Be Put On Hold For Now at Mirriad Advertising plc (LON:MIRI)

Key Insights

• Mirriad Advertising's Annual General Meeting to take place on 28th of June
• Total pay for CEO Stephan Beringer includes UK£447.0k salary
• The overall pay is 99% above the industry average
• Mirriad Advertising's three-year loss to shareholders was 98% while its EPS grew by 0.6% over the past three years

Shareholders of Mirriad Advertising plc (LON:MIRI) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 28th of June could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. 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 Mirriad Advertising

Comparing Mirriad Advertising plc's CEO Compensation With The Industry

Our data indicates that Mirriad Advertising plc has a market capitalization of UK£9.9m, and total annual CEO compensation was reported as UK£584k for the year to December 2023. That's mostly flat as compared to the prior year's compensation. In particular, the salary of UK£447.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the British Media industry with market capitalizations below UK£158m, we found that the median total CEO compensation was UK£293k. Hence, we can conclude that Stephan Beringer is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	UK£447k	UK£443k	77%
Other	UK£137k	UK£131k	23%
Total Compensation	UK£584k	UK£574k	100%

Talking in terms of the industry, salary represented approximately 49% of total compensation out of all the companies we analyzed, while other remuneration made up 51% of the pie. It's interesting to note that Mirriad Advertising 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.

Mirriad Advertising plc's Growth

Over the last three years, Mirriad Advertising plc has not seen its earnings per share change much, though there is a slight positive movement. Its revenue is up 20% over the last year.

We think the revenue growth is good. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Mirriad Advertising plc Been A Good Investment?

Few Mirriad Advertising plc shareholders would feel satisfied with the return of -98% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid 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 probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 5 warning signs for Mirriad Advertising you should be aware of, and 3 of them are a bit unpleasant.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com