It's Unlikely That Gamma Communications plc's (LON:GAMA) CEO Will See A Huge Pay Rise This Year

Key Insights

• Gamma Communications will host its Annual General Meeting on 14th of May
• Salary of UK£474.0k is part of CEO Andrew Scott Belshaw's total remuneration
• Total compensation is 57% above industry average
• Gamma Communications' total shareholder return over the past three years was 27% while its EPS grew by 10% over the past three years

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Under the guidance of CEO Andrew Scott Belshaw, Gamma Communications plc (LON:GAMA) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 14th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

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Comparing Gamma Communications plc's CEO Compensation With The Industry

Our data indicates that Gamma Communications plc has a market capitalization of UK£1.3b, and total annual CEO compensation was reported as UK£1.3m for the year to December 2024. Notably, that's an increase of 9.8% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£474k.

For comparison, other companies in the the United Kingdom Telecom industry with market capitalizations ranging between UK£747m and UK£2.4b had a median total CEO compensation of UK£852k. This suggests that Andrew Scott Belshaw is paid more than the median for the industry. What's more, Andrew Scott Belshaw holds UK£1.9m worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	UK£474k	UK£460k	36%
Other	UK£861k	UK£756k	64%
Total Compensation	UK£1.3m	UK£1.2m	100%

Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. Gamma Communications pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Gamma Communications plc's Growth

Over the past three years, Gamma Communications plc has seen its earnings per share (EPS) grow by 10% per year. Its revenue is up 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Gamma Communications plc Been A Good Investment?

With a total shareholder return of 27% over three years, Gamma Communications plc shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Gamma Communications.

Switching gears from Gamma Communications, 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.