It Looks Like Shareholders Would Probably Approve Ingenta plc's (LON:ING) CEO Compensation Package

We have been pretty impressed with the performance at Ingenta plc (LON:ING) recently and CEO Gregory Winner deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 11 November 2022. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Ingenta

How Does Total Compensation For Gregory Winner Compare With Other Companies In The Industry?

Our data indicates that Ingenta plc has a market capitalization of UK£20m, and total annual CEO compensation was reported as UK£286k for the year to December 2021. We note that's an increase of 25% above last year. In particular, the salary of UK£251.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below UK£177m, we found that the median total CEO compensation was UK£286k. So it looks like Ingenta compensates Gregory Winner in line with the median for the industry.

Component	2021	2020	Proportion (2021)
Salary	UK£251k	UK£200k	88%
Other	UK£35k	UK£28k	12%
Total Compensation	UK£286k	UK£228k	100%

Talking in terms of the industry, salary represented approximately 65% of total compensation out of all the companies we analyzed, while other remuneration made up 35% of the pie. According to our research, Ingenta has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Ingenta plc's Growth Numbers

Over the past three years, Ingenta plc has seen its earnings per share (EPS) grow by 114% per year. It achieved revenue growth of 2.3% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Ingenta plc Been A Good Investment?

We think that the total shareholder return of 63%, over three years, would leave most Ingenta plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Ingenta (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Ingenta, 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.

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.