This Is The Reason Why We Think 4imprint Group plc's (LON:FOUR) CEO Might Be Underpaid

Key Insights

• 4imprint Group to hold its Annual General Meeting on 21st of May
• CEO Kevin Lyons-Tarr's total compensation includes salary of US$560.6k
• Total compensation is 66% below industry average
• 4imprint Group's total shareholder return over the past three years was 49% while its EPS grew by 73% over the past three years

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Shareholders will be pleased by the impressive results for 4imprint Group plc (LON:FOUR) recently and CEO Kevin Lyons-Tarr has played a key role. At the upcoming AGM on 21st of May, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for 4imprint Group

Comparing 4imprint Group plc's CEO Compensation With The Industry

At the time of writing, our data shows that 4imprint Group plc has a market capitalization of UK£998m, and reported total annual CEO compensation of US$759k for the year to December 2024. We note that's a decrease of 34% compared to last year. We note that the salary portion, which stands at US$560.6k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the British Media industry with market capitalizations ranging between UK£752m and UK£2.4b had a median total CEO compensation of US$2.2m. Accordingly, 4imprint Group pays its CEO under the industry median. What's more, Kevin Lyons-Tarr holds UK£9.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$561k	US$560k	74%
Other	US$198k	US$587k	26%
Total Compensation	US$759k	US$1.1m	100%

Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. It's interesting to note that 4imprint Group pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

4imprint Group plc's Growth

4imprint Group plc's earnings per share (EPS) grew 73% per year over the last three years. It achieved revenue growth of 3.2% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has 4imprint Group plc Been A Good Investment?

Boasting a total shareholder return of 49% over three years, 4imprint Group 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. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for 4imprint Group you should be aware of, and 1 of them is concerning.

Important note: 4imprint Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.