Here's Why Shareholders May Want To Be Cautious With Increasing Intercede Group plc's (LON:IGP) CEO Pay Packet

By
Simply Wall St
Published
September 08, 2021
AIM:IGP
Source: Shutterstock

Under the guidance of CEO Klaas van der Leest, Intercede Group plc (LON:IGP) has performed reasonably well recently. As shareholders go into the upcoming AGM on 15 September 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Intercede Group

Comparing Intercede Group plc's CEO Compensation With the industry

According to our data, Intercede Group plc has a market capitalization of UK£58m, and paid its CEO total annual compensation worth UK£411k over the year to March 2021. That's a notable increase of 24% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£200k.

For comparison, other companies in the industry with market capitalizations below UK£145m, reported a median total CEO compensation of UK£240k. Hence, we can conclude that Klaas van der Leest is remunerated higher than the industry median. What's more, Klaas van der Leest holds UK£64k worth of shares in the company in their own name.

Component20212020Proportion (2021)
Salary UK£200k UK£200k 49%
Other UK£211k UK£131k 51%
Total CompensationUK£411k UK£331k100%

Talking in terms of the industry, salary represented approximately 68% of total compensation out of all the companies we analyzed, while other remuneration made up 32% of the pie. Intercede Group pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
AIM:IGP CEO Compensation September 9th 2021

A Look at Intercede Group plc's Growth Numbers

Intercede Group plc has seen its earnings per share (EPS) increase by 117% a year over the past three years. It achieved revenue growth of 5.9% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Intercede Group plc Been A Good Investment?

Boasting a total shareholder return of 227% over three years, Intercede Group plc has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 Intercede Group that investors should think about before committing capital to this stock.

Important note: Intercede 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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