Revolution Bars Group plc's (LON:RBG) CEO Compensation Is Looking A Bit Stretched At The Moment

editorial-team@simplywallst.com (Simply Wall St)

Thu, Nov 23, 2023, 10:05 PM 4 min read

Key Insights

Revolution Bars Group's Annual General Meeting to take place on 30th of November
Salary of UK£368.0k is part of CEO Rob Pitcher's total remuneration
Total compensation is 180% above industry average
Over the past three years, Revolution Bars Group's EPS grew by 107% and over the past three years, the total loss to shareholders 84%

Shareholders of Revolution Bars Group plc (LON:RBG) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 30th of November. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Revolution Bars Group

How Does Total Compensation For Rob Pitcher Compare With Other Companies In The Industry?

At the time of writing, our data shows that Revolution Bars Group plc has a market capitalization of UK£9.5m, and reported total annual CEO compensation of UK£610k for the year to July 2023. That's a notable decrease of 38% on last year. We note that the salary portion, which stands at UK£368.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the British Hospitality industry with market capitalizations under UK£160m, the reported median total CEO compensation was UK£218k. Hence, we can conclude that Rob Pitcher is remunerated higher than the industry median. Furthermore, Rob Pitcher directly owns UK£62k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	UK£368k	UK£358k	60%
Other	UK£242k	UK£622k	40%
Total Compensation	UK£610k	UK£980k	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. Our data reveals that Revolution Bars Group allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation — AIM:RBG CEO Compensation November 24th 2023

Revolution Bars Group plc's Growth

Revolution Bars Group plc's earnings per share (EPS) grew 107% per year over the last three years. It achieved revenue growth of 8.5% 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 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 Revolution Bars Group plc Been A Good Investment?

With a total shareholder return of -84% over three years, Revolution Bars Group plc shareholders would by and large be disappointed. 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 be keen to know what's holding the stock back when earnings have grown. 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Revolution Bars Group (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Important note: Revolution Bars Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.