It's Unlikely That Synectics plc's (LON:SNX) CEO Will See A Huge Pay Rise This Year

Key Insights

• Synectics' Annual General Meeting to take place on 24th of April
• Salary of UK£281.0k is part of CEO Paul Webb's total remuneration
• Total compensation is 44% above industry average
• Over the past three years, Synectics' EPS grew by 122% and over the past three years, the total shareholder return was 39%

Performance at Synectics plc (LON:SNX) has been reasonably good and CEO Paul Webb has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 24th of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Synectics

Comparing Synectics plc's CEO Compensation With The Industry

According to our data, Synectics plc has a market capitalization of UK£33m, and paid its CEO total annual compensation worth UK£382k over the year to November 2023. That's a notable increase of 11% on last year. In particular, the salary of UK£281.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the British Electronic industry with market capitalizations below UK£161m, reported a median total CEO compensation of UK£266k. This suggests that Paul Webb is paid more than the median for the industry. Moreover, Paul Webb also holds UK£1.2m worth of Synectics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	UK£281k	UK£269k	74%
Other	UK£101k	UK£74k	26%
Total Compensation	UK£382k	UK£343k	100%

On an industry level, around 71% of total compensation represents salary and 29% is other remuneration. Our data reveals that Synectics allocates salary more or less in line with the wider market. 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.

Synectics plc's Growth

Over the past three years, Synectics plc has seen its earnings per share (EPS) grow by 122% per year. Its revenue is up 26% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Synectics plc Been A Good Investment?

Most shareholders would probably be pleased with Synectics plc for providing a total return of 39% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

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 Synectics that you should be aware of before investing.

Switching gears from Synectics, 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.

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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.