Uniphar plc's (ISE:UPR) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Uniphar's Annual General Meeting to take place on 8th of May
• Total pay for CEO Ger Rabbette includes €669.0k salary
• The overall pay is 50% above the industry average
• Uniphar's EPS grew by 12% over the past three years while total shareholder loss over the past three years was 19%

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The underwhelming share price performance of Uniphar plc (ISE:UPR) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 8th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. 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 €768m, and total annual CEO compensation was reported as €1.8m for the year to December 2024. We note that's an increase of 13% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €669k.

On examining similar-sized companies in the Ireland Healthcare industry with market capitalizations between €353m and €1.4b, we discovered that the median CEO total compensation of that group was €1.2m. Accordingly, our analysis reveals that Uniphar plc pays Ger Rabbette north of the industry median. What's more, Ger Rabbette holds €23m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 55% of total compensation represents salary and 45% is other remuneration. 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.

Uniphar plc's Growth

Uniphar plc has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is up 8.5%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Uniphar plc Been A Good Investment?

With a three year total loss of 19% 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...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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 one thing, but it is also interesting to check if the CEO is buying or selling Uniphar (free visualization of insider trades).

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.