We Think Glenveagh Properties PLC's (ISE:GVR) CEO Compensation Looks Fair

Key Insights

• Glenveagh Properties will host its Annual General Meeting on 2nd of May
• Salary of €600.0k is part of CEO Stephen Garvey's total remuneration
• The overall pay is comparable to the industry average
• Glenveagh Properties' total shareholder return over the past three years was 37% while its EPS grew by 60% over the past three years

It would be hard to discount the role that CEO Stephen Garvey has played in delivering the impressive results at Glenveagh Properties PLC (ISE:GVR) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 2nd of May. 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. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Glenveagh Properties

Comparing Glenveagh Properties PLC's CEO Compensation With The Industry

According to our data, Glenveagh Properties PLC has a market capitalization of €730m, and paid its CEO total annual compensation worth €1.5m over the year to December 2023. We note that's a small decrease of 6.5% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €600k.

On comparing similar companies from the Ireland Consumer Durables industry with market caps ranging from €373m to €1.5b, we found that the median CEO total compensation was €1.2m. So it looks like Glenveagh Properties compensates Stephen Garvey in line with the median for the industry. What's more, Stephen Garvey holds €12m 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	€600k	€600k	40%
Other	€910k	€1.0m	60%
Total Compensation	€1.5m	€1.6m	100%

Talking in terms of the industry, salary represented approximately 55% of total compensation out of all the companies we analyzed, while other remuneration made up 45% of the pie. Glenveagh Properties sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Glenveagh Properties PLC's Growth Numbers

Glenveagh Properties PLC's earnings per share (EPS) grew 60% per year over the last three years. In the last year, its revenue is down 5.7%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Glenveagh Properties PLC Been A Good Investment?

We think that the total shareholder return of 37%, over three years, would leave most Glenveagh Properties PLC shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

Shareholders may want to check for free if Glenveagh Properties insiders are buying or selling shares.

Important note: Glenveagh Properties 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.