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Shareholders will be pleased by the impressive results for Gear4music (Holdings) plc (LON:G4M) recently and CEO Andrew Wass has played a key role. This would be kept in mind at the upcoming AGM on 09 September 2021 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

Check out our latest analysis for Gear4music (Holdings)

Comparing Gear4music (Holdings) plc's CEO Compensation With the industry

At the time of writing, our data shows that Gear4music (Holdings) plc has a market capitalization of UK£208m, and reported total annual CEO compensation of UK£228k for the year to March 2021. That's a notable increase of 92% on last year. We note that the salary portion, which stands at UK£219.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between UK£72m and UK£289m had a median total CEO compensation of UK£534k. That is to say, Andrew Wass is paid under the industry median. Moreover, Andrew Wass also holds UK£63m worth of Gear4music (Holdings) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 68% of total compensation out of all the companies we analyzed, while other remuneration made up 32% of the pie. Gear4music (Holdings) pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Gear4music (Holdings) plc's Growth

Over the past three years, Gear4music (Holdings) plc has seen its earnings per share (EPS) grow by 108% per year. It achieved revenue growth of 31% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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.