Shareholders May Be A Bit More Conservative With Strix Group Plc's (LON:KETL) CEO Compensation For Now

Key Insights

• Strix Group to hold its Annual General Meeting on 20th of June
• Salary of UK£375.0k is part of CEO Mark Victor Bartlett's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Strix Group's EPS fell by 15% and over the past three years, the total loss to shareholders 69%

Shareholders of Strix Group Plc (LON:KETL) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also lacking, despite revenue growth. The AGM coming up on 20th of June will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

Check out our latest analysis for Strix Group

How Does Total Compensation For Mark Victor Bartlett Compare With Other Companies In The Industry?

At the time of writing, our data shows that Strix Group Plc has a market capitalization of UK£175m, and reported total annual CEO compensation of UK£483k for the year to December 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of UK£375.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the British Electronic industry with market capitalizations ranging from UK£78m to UK£313m, the reported median CEO total compensation was UK£497k. This suggests that Strix Group remunerates its CEO largely in line with the industry average. What's more, Mark Victor Bartlett holds UK£2.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	UK£375k	UK£365k	78%
Other	UK£108k	UK£107k	22%
Total Compensation	UK£483k	UK£472k	100%

Talking in terms of the industry, salary represented approximately 74% of total compensation out of all the companies we analyzed, while other remuneration made up 26% of the pie. Although there is a difference in how total compensation is set, Strix Group 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.

Strix Group Plc's Growth

Strix Group Plc has reduced its earnings per share by 15% a year over the last three years. In the last year, its revenue is up 35%.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Strix Group Plc Been A Good Investment?

The return of -69% over three years would not have pleased Strix Group Plc shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Strix Group that you should be aware of before investing.

Important note: Strix 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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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.