Most Shareholders Will Probably Find That The Compensation For Alphawave IP Group plc's (LON:AWE) CEO Is Reasonable

Key Insights

• Alphawave IP Group will host its Annual General Meeting on 25th of June
• Total pay for CEO Tony Pialis includes US$573.7k salary
• The overall pay is 71% below the industry average
• Alphawave IP Group's three-year loss to shareholders was 57% while its EPS was down 104% over the past three years

Performance at Alphawave IP Group plc (LON:AWE) has been rather uninspiring recently and shareholders may be wondering how CEO Tony Pialis plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 25th of June. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for Alphawave IP Group

Comparing Alphawave IP Group plc's CEO Compensation With The Industry

Our data indicates that Alphawave IP Group plc has a market capitalization of UK£1.0b, and total annual CEO compensation was reported as US$578k for the year to December 2023. That's just a smallish increase of 5.6% on last year. We note that the salary portion, which stands at US$573.7k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the British Semiconductor industry with market caps ranging from UK£787m to UK£2.5b, we found that the median CEO total compensation was US$2.0m. That is to say, Tony Pialis is paid under the industry median. Moreover, Tony Pialis also holds UK£136m worth of Alphawave IP Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$574k	US$544k	99%
Other	US$4.0k	US$3.1k	1%
Total Compensation	US$578k	US$547k	100%

On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. Investors will find it interesting that Alphawave IP Group pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Alphawave IP Group plc's Growth

Alphawave IP Group plc has reduced its earnings per share by 104% a year over the last three years. Its revenue is up 74% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Alphawave IP Group plc Been A Good Investment?

The return of -57% over three years would not have pleased Alphawave IP Group plc shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Alphawave IP Group pays its CEO a majority of compensation through a salary. The fact that shareholders have earned a negative share price return is certainly disconcerting. The poor performance of the share price might have something to do with the lack of earnings growth. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Alphawave IP Group that you should be aware of before investing.

Switching gears from Alphawave IP Group, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com