Picton Property Income Limited's (LON:PCTN) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Picton Property Income will host its Annual General Meeting on 30th of July
• Total pay for CEO Michael Morris includes UK£380.0k salary
• The total compensation is 52% higher than the average for the industry
• Picton Property Income's three-year loss to shareholders was 8.5% while its EPS was down 78% over the past three years

Picton Property Income Limited (LON:PCTN) has not performed well recently and CEO Michael Morris will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 30th of July. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Picton Property Income

How Does Total Compensation For Michael Morris Compare With Other Companies In The Industry?

According to our data, Picton Property Income Limited has a market capitalization of UK£394m, and paid its CEO total annual compensation worth UK£882k over the year to March 2024. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£380k.

On comparing similar companies from the British REITs industry with market caps ranging from UK£155m to UK£619m, we found that the median CEO total compensation was UK£579k. Accordingly, our analysis reveals that Picton Property Income Limited pays Michael Morris north of the industry median. What's more, Michael Morris holds UK£668k worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	UK£380k	UK£331k	43%
Other	UK£502k	UK£571k	57%
Total Compensation	UK£882k	UK£902k	100%

On an industry level, roughly 37% of total compensation represents salary and 63% is other remuneration. It's interesting to note that Picton Property Income pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Picton Property Income Limited's Growth

Picton Property Income Limited has reduced its earnings per share by 78% a year over the last three years. In the last year, its revenue is up 5.5%.

The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Picton Property Income Limited Been A Good Investment?

Given the total shareholder loss of 8.5% over three years, many shareholders in Picton Property Income Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

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 did our research and spotted 1 warning sign for Picton Property Income that investors should look into moving forward.

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.

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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