It would be hard to discount the role that CEO Manuel Llobet has played in delivering the impressive results at Allergy Therapeutics plc (LON:AGY) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 22 November 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.
Comparing Allergy Therapeutics plc's CEO Compensation With the industry
According to our data, Allergy Therapeutics plc has a market capitalization of UK£231m, and paid its CEO total annual compensation worth UK£662k over the year to June 2021. That's a fairly small increase of 7.8% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£324k.
In comparison with other companies in the industry with market capitalizations ranging from UK£149m to UK£595m, the reported median CEO total compensation was UK£612k. From this we gather that Manuel Llobet is paid around the median for CEOs in the industry. What's more, Manuel Llobet holds UK£1.2m worth of shares in the company in their own name.
Speaking on an industry level, nearly 54% of total compensation represents salary, while the remainder of 46% is other remuneration. Our data reveals that Allergy Therapeutics allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Allergy Therapeutics plc's Growth
Allergy Therapeutics plc has seen its earnings per share (EPS) increase by 75% a year over the past three years. In the last year, its revenue is up 7.8%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Allergy Therapeutics plc Been A Good Investment?
Most shareholders would probably be pleased with Allergy Therapeutics plc for providing a total return of 109% over three years. 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.
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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
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. We identified 2 warning signs for Allergy Therapeutics (1 is significant!) that you should be aware of before investing here.
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.
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.
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