Made Tech Group Plc's (LON:MTEC) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Made Tech Group will host its Annual General Meeting on 20th of November
• Total pay for CEO Rory MacDonald includes UK£300.0k salary
• The total compensation is similar to the average for the industry
• Made Tech Group's EPS declined by 37% over the past three years while total shareholder loss over the past three years was 85%

The results at Made Tech Group Plc (LON:MTEC) have been quite disappointing recently and CEO Rory MacDonald bears some responsibility for this. At the upcoming AGM on 20th of November, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Made Tech Group

How Does Total Compensation For Rory MacDonald Compare With Other Companies In The Industry?

Our data indicates that Made Tech Group Plc has a market capitalization of UK£28m, and total annual CEO compensation was reported as UK£326k for the year to May 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is UK£300.0k, represents most of the total compensation being paid.

In comparison with other companies in the British IT industry with market capitalizations under UK£157m, the reported median total CEO compensation was UK£326k. From this we gather that Rory MacDonald is paid around the median for CEOs in the industry. Moreover, Rory MacDonald also holds UK£8.0m worth of Made Tech Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	UK£300k	UK£300k	92%
Other	UK£26k	UK£25k	8%
Total Compensation	UK£326k	UK£325k	100%

Talking in terms of the industry, salary represented approximately 73% of total compensation out of all the companies we analyzed, while other remuneration made up 27% of the pie. Made Tech Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Made Tech Group Plc's Growth

Over the last three years, Made Tech Group Plc has shrunk its earnings per share by 37% per year. In the last year, its revenue is down 4.0%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Made Tech Group Plc Been A Good Investment?

Few Made Tech Group Plc shareholders would feel satisfied with the return of -85% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for Made Tech Group you should be aware of, and 1 of them is potentially serious.

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.

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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.