Here's Why We Think Eleco plc's (LON:ELCO) CEO Compensation Looks Fair for the time being

Key Insights

• Eleco to hold its Annual General Meeting on 3rd of June
• Total pay for CEO Jonathan Hunter includes UK£240.0k salary
• The overall pay is comparable to the industry average
• Over the past three years, Eleco's EPS grew by 6.6% and over the past three years, the total shareholder return was 80%

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Performance at Eleco plc (LON:ELCO) has been reasonably good and CEO Jonathan Hunter has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 3rd of June. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for Eleco

How Does Total Compensation For Jonathan Hunter Compare With Other Companies In The Industry?

At the time of writing, our data shows that Eleco plc has a market capitalization of UK£128m, and reported total annual CEO compensation of UK£622k for the year to December 2024. Notably, that's an increase of 11% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£240k.

On examining similar-sized companies in the British Software industry with market capitalizations between UK£74m and UK£295m, we discovered that the median CEO total compensation of that group was UK£625k. This suggests that Eleco remunerates its CEO largely in line with the industry average. Moreover, Jonathan Hunter also holds UK£75k worth of Eleco stock directly under their own name.

Speaking on an industry level, nearly 73% of total compensation represents salary, while the remainder of 27% is other remuneration. Eleco pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Eleco plc's Growth Numbers

Eleco plc's earnings per share (EPS) grew 6.6% per year over the last three years. Its revenue is up 16% over the last year.

This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Eleco plc Been A Good Investment?

Most shareholders would probably be pleased with Eleco plc for providing a total return of 80% over three years. 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.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

So you may want to check if insiders are buying Eleco shares with their own money (free access).

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.

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

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.