The Property Franchise Group PLC's (LON:TPFG) CEO Looks Due For A Compensation Raise

Key Insights

• Property Franchise Group to hold its Annual General Meeting on 29th of May
• CEO Gareth Samples' total compensation includes salary of UK£307.0k
• Total compensation is 50% below industry average
• Property Franchise Group's total shareholder return over the past three years was 79% while its EPS grew by 10% over the past three years

Our free stock report includes 2 warning signs investors should be aware of before investing in Property Franchise Group. Read for free now.

The solid performance at The Property Franchise Group PLC (LON:TPFG) has been impressive and shareholders will probably be pleased to know that CEO Gareth Samples has delivered. At the upcoming AGM on 29th of May, 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 Property Franchise Group

How Does Total Compensation For Gareth Samples Compare With Other Companies In The Industry?

According to our data, The Property Franchise Group PLC has a market capitalization of UK£308m, and paid its CEO total annual compensation worth UK£607k over the year to December 2024. Notably, that's an increase of 20% over the year before. We note that the salary of UK£307.0k makes up a sizeable portion of the total compensation received by the CEO.

On examining similar-sized companies in the British Real Estate industry with market capitalizations between UK£149m and UK£596m, we discovered that the median CEO total compensation of that group was UK£1.2m. That is to say, Gareth Samples is paid under the industry median. What's more, Gareth Samples holds UK£2.5m 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	UK£307k	UK£282k	51%
Other	UK£300k	UK£225k	49%
Total Compensation	UK£607k	UK£507k	100%

Speaking on an industry level, nearly 55% of total compensation represents salary, while the remainder of 45% is other remuneration. There isn't a significant difference between Property Franchise Group and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at The Property Franchise Group PLC's Growth Numbers

Over the past three years, The Property Franchise Group PLC has seen its earnings per share (EPS) grow by 10% per year. It achieved revenue growth of 147% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Property Franchise Group PLC Been A Good Investment?

Most shareholders would probably be pleased with The Property Franchise Group PLC for providing a total return of 79% over three years. 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.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Property Franchise Group that investors should look into moving forward.

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.