Motorpoint Group Plc's (LON:MOTR) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Motorpoint Group to hold its Annual General Meeting on 24th of July
• CEO Mark Carpenter's total compensation includes salary of UK£371.0k
• Total compensation is similar to the industry average
• Motorpoint Group's three-year loss to shareholders was 61% while its EPS was down 89% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at Motorpoint Group Plc (LON:MOTR) recently. At the upcoming AGM on 24th of July, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Motorpoint Group

Comparing Motorpoint Group Plc's CEO Compensation With The Industry

According to our data, Motorpoint Group Plc has a market capitalization of UK£120m, and paid its CEO total annual compensation worth UK£636k over the year to March 2024. We note that's a decrease of 21% compared to last year. Notably, the salary which is UK£371.0k, represents a considerable chunk of the total compensation being paid.

On comparing similar companies from the British Specialty Retail industry with market caps ranging from UK£77m to UK£308m, we found that the median CEO total compensation was UK£723k. So it looks like Motorpoint Group compensates Mark Carpenter in line with the median for the industry. Furthermore, Mark Carpenter directly owns UK£12m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	UK£371k	UK£360k	58%
Other	UK£265k	UK£448k	42%
Total Compensation	UK£636k	UK£808k	100%

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. Our data reveals that Motorpoint Group allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Motorpoint Group Plc's Growth Numbers

Over the last three years, Motorpoint Group Plc has shrunk its earnings per share by 89% per year. Its revenue is down 25% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Motorpoint Group Plc Been A Good Investment?

With a total shareholder return of -61% over three years, Motorpoint Group Plc shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in Motorpoint Group we think you should know about.

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