ECSC Group plc's (LON:ECSC) CEO Will Probably Find It Hard To See A Huge Raise This Year

The underwhelming share price performance of ECSC Group plc (LON:ECSC) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 23 June 2021 could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for ECSC Group

How Does Total Compensation For Ian Mann Compare With Other Companies In The Industry?

At the time of writing, our data shows that ECSC Group plc has a market capitalization of UK£8.4m, and reported total annual CEO compensation of UK£239k for the year to December 2020. Notably, that's an increase of 12% over the year before. We note that the salary portion, which stands at UK£200.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below UK£142m, we found that the median total CEO compensation was UK£239k. So it looks like ECSC Group compensates Ian Mann in line with the median for the industry. What's more, Ian Mann holds UK£2.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	UK£200k	UK£175k	84%
Other	UK£39k	UK£39k	16%
Total Compensation	UK£239k	UK£214k	100%

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. According to our research, ECSC Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ECSC Group plc's Growth

Over the past three years, ECSC Group plc has seen its earnings per share (EPS) grow by 75% per year. It saw its revenue drop 4.1% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 ECSC Group plc Been A Good Investment?

Since shareholders would have lost about 27% over three years, some ECSC Group plc investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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 ECSC Group that you should be aware of before investing.

Important note: ECSC Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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