Increases to Computacenter plc's (LON:CCC) CEO Compensation Might Cool off for now

Key Insights

• Computacenter will host its Annual General Meeting on 14th of May
• Salary of UK£681.2k is part of CEO Mike Norris's total remuneration
• Total compensation is 126% above industry average
• Computacenter's total shareholder return over the past three years was 8.5% while its EPS grew by 8.7% over the past three years

CEO Mike Norris has done a decent job of delivering relatively good performance at Computacenter plc (LON:CCC) recently. 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 14th of May. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Computacenter

How Does Total Compensation For Mike Norris Compare With Other Companies In The Industry?

According to our data, Computacenter plc has a market capitalization of UK£2.9b, and paid its CEO total annual compensation worth UK£2.8m over the year to December 2023. That's a notable decrease of 12% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£681k.

In comparison with other companies in the British IT industry with market capitalizations ranging from UK£1.6b to UK£5.1b, the reported median CEO total compensation was UK£1.2m. Accordingly, our analysis reveals that Computacenter plc pays Mike Norris north of the industry median. Furthermore, Mike Norris directly owns UK£28m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	UK£681k	UK£650k	25%
Other	UK£2.1m	UK£2.5m	75%
Total Compensation	UK£2.8m	UK£3.1m	100%

On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. In Computacenter's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Computacenter plc's Growth

Computacenter plc's earnings per share (EPS) grew 8.7% per year over the last three years. It achieved revenue growth of 7.0% over the last year.

We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. 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 Computacenter plc Been A Good Investment?

Computacenter plc has generated a total shareholder return of 8.5% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

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. We did our research and spotted 1 warning sign for Computacenter 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.

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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.