Here's Why Shareholders May Want To Be Cautious With Increasing Origin Enterprises plc's (ISE:OIZ) CEO Pay Packet

Key Insights

• Origin Enterprises will host its Annual General Meeting on 21st of November
• Total pay for CEO Sean Coyle includes €519.0k salary
• Total compensation is 49% above industry average
• Origin Enterprises' EPS grew by 7.8% over the past three years while total shareholder return over the past three years was 8.3%

Performance at Origin Enterprises plc (ISE:OIZ) has been reasonably good and CEO Sean Coyle 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 21st of November. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Origin Enterprises

How Does Total Compensation For Sean Coyle Compare With Other Companies In The Industry?

According to our data, Origin Enterprises plc has a market capitalization of €324m, and paid its CEO total annual compensation worth €1.1m over the year to July 2024. That's a modest increase of 5.8% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at €519k.

On comparing similar companies from the Ireland Food industry with market caps ranging from €190m to €761m, we found that the median CEO total compensation was €771k. This suggests that Sean Coyle is paid more than the median for the industry. Furthermore, Sean Coyle directly owns €763k worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	€519k	€515k	45%
Other	€627k	€568k	55%
Total Compensation	€1.1m	€1.1m	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. In Origin Enterprises' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Origin Enterprises plc's Growth Numbers

Over the past three years, Origin Enterprises plc has seen its earnings per share (EPS) grow by 7.8% per year. It saw its revenue drop 17% over the last year.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. 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 Origin Enterprises plc Been A Good Investment?

Origin Enterprises plc has generated a total shareholder return of 8.3% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 Origin Enterprises that you should be aware of before investing.

Switching gears from Origin Enterprises, 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.