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

Key Insights

• Uniphar will host its Annual General Meeting on 9th of May
• CEO Ger Rabbette's total compensation includes salary of €643.0k
• The total compensation is 40% higher than the average for the industry
• Over the past three years, Uniphar's EPS grew by 16% and over the past three years, the total loss to shareholders 13%

In the past three years, shareholders of Uniphar plc (ISE:UPR) have seen a loss on their investment. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 9th of May. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Uniphar

How Does Total Compensation For Ger Rabbette Compare With Other Companies In The Industry?

Our data indicates that Uniphar plc has a market capitalization of €696m, and total annual CEO compensation was reported as €1.6m for the year to December 2023. That's a notable increase of 20% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €643k.

On comparing similar companies from the Ireland Healthcare industry with market caps ranging from €373m to €1.5b, we found that the median CEO total compensation was €1.1m. This suggests that Ger Rabbette is paid more than the median for the industry. What's more, Ger Rabbette holds €20m 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	€643k	€618k	41%
Other	€931k	€698k	59%
Total Compensation	€1.6m	€1.3m	100%

Talking in terms of the industry, salary represented approximately 58% of total compensation out of all the companies we analyzed, while other remuneration made up 42% of the pie. Uniphar pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Uniphar plc's Growth Numbers

Over the past three years, Uniphar plc has seen its earnings per share (EPS) grow by 16% per year. Its revenue is up 23% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Uniphar plc Been A Good Investment?

With a three year total loss of 13% for the shareholders, Uniphar plc would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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 2 warning signs for Uniphar that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.