We Think FBD Holdings plc's (ISE:EG7) CEO Compensation Looks Fair

Key Insights

• FBD Holdings will host its Annual General Meeting on 9th of May
• CEO Tomas O'Midheach's total compensation includes salary of €530.0k
• Total compensation is similar to the industry average
• Over the past three years, FBD Holdings' EPS grew by 138% and over the past three years, the total shareholder return was 128%

It would be hard to discount the role that CEO Tomas O'Midheach has played in delivering the impressive results at FBD Holdings plc (ISE:EG7) recently. Coming up to the next AGM on 9th of May, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

See our latest analysis for FBD Holdings

Comparing FBD Holdings plc's CEO Compensation With The Industry

At the time of writing, our data shows that FBD Holdings plc has a market capitalization of €534m, and reported total annual CEO compensation of €1.2m for the year to December 2023. That's a fairly small increase of 7.0% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at €530k.

On comparing similar companies from the Ireland Insurance industry with market caps ranging from €186m to €746m, we found that the median CEO total compensation was €1.1m. So it looks like FBD Holdings compensates Tomas O'Midheach in line with the median for the industry. Furthermore, Tomas O'Midheach directly owns €811k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	€530k	€500k	46%
Other	€626k	€580k	54%
Total Compensation	€1.2m	€1.1m	100%

On an industry level, roughly 41% of total compensation represents salary and 59% is other remuneration. FBD Holdings pays out 46% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

FBD Holdings plc's Growth

FBD Holdings plc's earnings per share (EPS) grew 138% per year over the last three years. It achieved revenue growth of 16% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has FBD Holdings plc Been A Good Investment?

We think that the total shareholder return of 128%, over three years, would leave most FBD Holdings plc shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for FBD Holdings you should be aware of, and 1 of them is potentially serious.

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.