We Think The Pebble Group plc's (LON:PEBB) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Pebble Group to hold its Annual General Meeting on 3rd of June
• Salary of UK£312.0k is part of CEO Chris Lee's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Pebble Group's EPS fell by 3.1% and over the past three years, the total loss to shareholders 67%

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The results at The Pebble Group plc (LON:PEBB) have been quite disappointing recently and CEO Chris Lee bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 3rd of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Pebble Group

Comparing The Pebble Group plc's CEO Compensation With The Industry

Our data indicates that The Pebble Group plc has a market capitalization of UK£54m, and total annual CEO compensation was reported as UK£476k for the year to December 2024. That's a notable increase of 17% on last year. In particular, the salary of UK£312.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the British Media industry with market capitalizations under UK£147m, the reported median total CEO compensation was UK£393k. From this we gather that Chris Lee is paid around the median for CEOs in the industry. Furthermore, Chris Lee directly owns UK£2.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 62% of total compensation represents salary, while the remainder of 38% is other remuneration. Although there is a difference in how total compensation is set, Pebble Group more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at The Pebble Group plc's Growth Numbers

The Pebble Group plc has reduced its earnings per share by 3.1% a year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

The decline in EPS is a bit concerning. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 The Pebble Group plc Been A Good Investment?

With a total shareholder return of -67% over three years, The Pebble Group plc shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Pebble Group you should be aware of, and 1 of them makes us a bit uncomfortable.

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. 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.