Shareholders May Be A Little Conservative With Origin Enterprises plc's (ISE:OIZ) CEO Compensation For Now

Key Insights

• Origin Enterprises' Annual General Meeting to take place on 16th of November
• Total pay for CEO Sean Coyle includes €515.0k salary
• The overall pay is comparable to the industry average
• Origin Enterprises' EPS grew by 42% over the past three years while total shareholder return over the past three years was 3.1%

CEO Sean Coyle has done a decent job of delivering relatively good performance at Origin Enterprises plc (ISE:OIZ) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 16th of November. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for Origin Enterprises

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

Our data indicates that Origin Enterprises plc has a market capitalization of €359m, and total annual CEO compensation was reported as €1.1m for the year to July 2023. That's a fairly small increase of 3.7% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at €515k.

On comparing similar companies from the Ireland Food industry with market caps ranging from €187m to €747m, we found that the median CEO total compensation was €900k. So it looks like Origin Enterprises compensates Sean Coyle in line with the median for the industry. What's more, Sean Coyle holds €576k worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	€515k	€510k	48%
Other	€568k	€534k	52%
Total Compensation	€1.1m	€1.0m	100%

On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. It's interesting to note that Origin Enterprises allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Origin Enterprises plc's Growth Numbers

Origin Enterprises plc's earnings per share (EPS) grew 42% per year over the last three years. In the last year, its revenue is up 4.9%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 3.1% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

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, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to 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. That's why we did some digging and identified 2 warning signs for Origin Enterprises that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.