Belvoir Group PLC's (LON:BLV) CEO Looks Like They Deserve Their Pay Packet

It would be hard to discount the role that CEO Dorian Gonsalves has played in delivering the impressive results at Belvoir Group PLC (LON:BLV) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 27 May 2021. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Belvoir Group

How Does Total Compensation For Dorian Gonsalves Compare With Other Companies In The Industry?

Our data indicates that Belvoir Group PLC has a market capitalization of UK£80m, and total annual CEO compensation was reported as UK£354k for the year to December 2020. That's a notable increase of 10% on last year. We note that the salary of UK£198.0k makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below UK£141m, reported a median total CEO compensation of UK£283k. From this we gather that Dorian Gonsalves is paid around the median for CEOs in the industry. Furthermore, Dorian Gonsalves directly owns UK£1.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	UK£198k	UK£188k	56%
Other	UK£156k	UK£133k	44%
Total Compensation	UK£354k	UK£321k	100%

On an industry level, around 54% of total compensation represents salary and 46% is other remuneration. Although there is a difference in how total compensation is set, Belvoir Group more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Belvoir Group PLC's Growth Numbers

Belvoir Group PLC has seen its earnings per share (EPS) increase by 21% a year over the past three years. In the last year, its revenue is up 13%.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Belvoir Group PLC Been A Good Investment?

Boasting a total shareholder return of 155% over three years, Belvoir Group PLC has done well by shareholders. 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus 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 can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Belvoir 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. 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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