We Think Some Shareholders May Hesitate To Increase Pennant International Group plc's (LON:PEN) CEO Compensation
In This Article:
Key Insights
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Pennant International Group to hold its Annual General Meeting on 17th of July
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Total pay for CEO Phil Walker includes UK£226.0k salary
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The total compensation is 52% higher than the average for the industry
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Pennant International Group's EPS grew by 43% over the past three years while total shareholder loss over the past three years was 31%
In the past three years, the share price of Pennant International Group plc (LON:PEN) has struggled to grow and now shareholders are sitting on a loss. 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 17th of July. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
Check out our latest analysis for Pennant International Group
Comparing Pennant International Group plc's CEO Compensation With The Industry
According to our data, Pennant International Group plc has a market capitalization of UK£10m, and paid its CEO total annual compensation worth UK£308k over the year to December 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of UK£226.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the British Aerospace & Defense industry with market capitalizations below UK£156m, we found that the median total CEO compensation was UK£202k. Accordingly, our analysis reveals that Pennant International Group plc pays Phil Walker north of the industry median.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | UK£226k | UK£219k | 73% |
| Other | UK£82k | UK£86k | 27% |
| Total Compensation | UK£308k | UK£305k | 100% |
Speaking on an industry level, nearly 41% of total compensation represents salary, while the remainder of 59% is other remuneration. Pennant International Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Pennant International Group plc's Growth
Pennant International Group plc's earnings per share (EPS) grew 43% per year over the last three years. It achieved revenue growth of 14% over the last year.