We Discuss Why The CEO Of Informa plc (LON:INF) Is Due For A Pay Rise

Key Insights

• Informa to hold its Annual General Meeting on 21st of June
• CEO Stephen Carter's total compensation includes salary of UK£902.2k
• The overall pay is 68% below the industry average
• Over the past three years, Informa's EPS grew by 125% and over the past three years, the total shareholder return was 68%

The solid performance at Informa plc (LON:INF) has been impressive and shareholders will probably be pleased to know that CEO Stephen Carter has delivered. At the upcoming AGM on 21st of June, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for Informa

How Does Total Compensation For Stephen Carter Compare With Other Companies In The Industry?

According to our data, Informa plc has a market capitalization of UK£11b, and paid its CEO total annual compensation worth UK£4.2m over the year to December 2023. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£902k.

On comparing similar companies in the British Media industry with market capitalizations above UK£6.3b, we found that the median total CEO compensation was UK£13m. Accordingly, Informa pays its CEO under the industry median. What's more, Stephen Carter holds UK£13m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	UK£902k	UK£876k	22%
Other	UK£3.3m	UK£3.2m	78%
Total Compensation	UK£4.2m	UK£4.1m	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. Informa sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Informa plc's Growth

Informa plc's earnings per share (EPS) grew 125% per year over the last three years. It achieved revenue growth of 41% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Informa plc Been A Good Investment?

We think that the total shareholder return of 68%, over three years, would leave most Informa plc shareholders smiling. 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Informa that investors should be aware of in a dynamic business environment.

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.

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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.

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