Shareholders May Not Be So Generous With Indivior PLC's (LON:INDV) CEO Compensation And Here's Why

Key Insights

• Indivior will host its Annual General Meeting on 9th of May
• CEO Mark Crossley's total compensation includes salary of US$834.2k
• The overall pay is 417% above the industry average
• Indivior's total shareholder return over the past three years was 88% while its EPS was down 62% over the past three years

CEO Mark Crossley has done a decent job of delivering relatively good performance at Indivior PLC (LON:INDV) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 9th of May. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Indivior

Comparing Indivior PLC's CEO Compensation With The Industry

At the time of writing, our data shows that Indivior PLC has a market capitalization of UK£1.9b, and reported total annual CEO compensation of US$7.6m for the year to December 2023. We note that's a decrease of 29% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$834k.

For comparison, other companies in the British Pharmaceuticals industry with market capitalizations ranging between UK£1.6b and UK£5.1b had a median total CEO compensation of US$1.5m. This suggests that Mark Crossley is paid more than the median for the industry. What's more, Mark Crossley holds UK£1.3m worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	US$834k	US$806k	11%
Other	US$6.7m	US$9.9m	89%
Total Compensation	US$7.6m	US$11m	100%

Speaking on an industry level, nearly 73% of total compensation represents salary, while the remainder of 27% is other remuneration. Indivior pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Indivior PLC's Growth Numbers

Indivior PLC has reduced its earnings per share by 62% a year over the last three years. In the last year, its revenue is up 19%.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Indivior PLC Been A Good Investment?

We think that the total shareholder return of 88%, over three years, would leave most Indivior PLC shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Although the company has performed relatively well, we still think there are some areas that could be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

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. That's why we did some digging and identified 3 warning signs for Indivior that investors should think about before committing capital to this stock.

Switching gears from Indivior, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.