PCI-PAL PLC's (LON:PCIP) CEO Looks Like They Deserve Their Pay Packet

The performance at PCI-PAL PLC (LON:PCIP) has been quite strong recently and CEO James Barham has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 27 October 2022. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for PCI-PAL

Comparing PCI-PAL PLC's CEO Compensation With The Industry

According to our data, PCI-PAL PLC has a market capitalization of UK£36m, and paid its CEO total annual compensation worth UK£326k over the year to June 2022. That's just a smallish increase of 3.9% on last year. Notably, the salary which is UK£210.7k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under UK£178m, the reported median total CEO compensation was UK£285k. From this we gather that James Barham is paid around the median for CEOs in the industry. What's more, James Barham holds UK£103k worth of shares in the company in their own name.

Component	2022	2021	Proportion (2022)
Salary	UK£211k	UK£186k	65%
Other	UK£116k	UK£128k	35%
Total Compensation	UK£326k	UK£314k	100%

On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. Although there is a difference in how total compensation is set, PCI-PAL more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

PCI-PAL PLC's Growth

Over the past three years, PCI-PAL PLC has seen its earnings per share (EPS) grow by 29% per year. It achieved revenue growth of 62% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 PCI-PAL PLC Been A Good Investment?

We think that the total shareholder return of 98%, over three years, would leave most PCI-PAL PLC shareholders smiling. 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 the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for PCI-PAL that investors should look into moving forward.

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.