Stock Analysis

Here's Why Shareholders Should Examine Kerry Group plc's (ISE:KRZ) CEO Compensation Package More Closely

ISE:KRZ
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Key Insights

  • Kerry Group's Annual General Meeting to take place on 1st of May
  • CEO Edmond Scanlon's total compensation includes salary of €1.33m
  • The overall pay is comparable to the industry average
  • Over the past three years, Kerry Group's EPS fell by 1.8% and over the past three years, the total loss to shareholders 6.4%
Our free stock report includes 1 warning sign investors should be aware of before investing in Kerry Group. Read for free now.

The results at Kerry Group plc (ISE:KRZ) have been quite disappointing recently and CEO Edmond Scanlon bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 1st of May. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Kerry Group

How Does Total Compensation For Edmond Scanlon Compare With Other Companies In The Industry?

At the time of writing, our data shows that Kerry Group plc has a market capitalization of €15b, and reported total annual CEO compensation of €6.0m for the year to December 2024. Notably, that's an increase of 32% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.3m.

On comparing similar companies in the Ireland Food industry with market capitalizations above €7.1b, we found that the median total CEO compensation was €5.0m. From this we gather that Edmond Scanlon is paid around the median for CEOs in the industry. What's more, Edmond Scanlon holds €5.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20242023Proportion (2024)
Salary€1.3m€1.3m22%
Other€4.7m€3.3m78%
Total Compensation€6.0m €4.6m100%

Talking in terms of the industry, salary represented approximately 51% of total compensation out of all the companies we analyzed, while other remuneration made up 49% of the pie. Kerry Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ISE:KRZ CEO Compensation April 24th 2025

Kerry Group plc's Growth

Over the last three years, Kerry Group plc has shrunk its earnings per share by 1.8% per year. Revenue was pretty flat on last year.

A lack of EPS improvement is not good to see. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Kerry Group plc Been A Good Investment?

With a three year total loss of 6.4% for the shareholders, Kerry Group plc would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Kerry Group that investors should be aware of in a dynamic business environment.

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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.