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Crest Nicholson Holdings plc's (LON:CRST) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

Under the guidance of CEO Peter Truscott, Crest Nicholson Holdings plc (LON:CRST) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 23rd of March. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Crest Nicholson Holdings

How Does Total Compensation For Peter Truscott Compare With Other Companies In The Industry?

At the time of writing, our data shows that Crest Nicholson Holdings plc has a market capitalization of UK£540m, and reported total annual CEO compensation of UK£1.8m for the year to October 2022. Notably, that's an increase of 24% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£666k.

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In comparison with other companies in the British Consumer Durables industry with market capitalizations ranging from UK£330m to UK£1.3b, the reported median CEO total compensation was UK£1.0m. Hence, we can conclude that Peter Truscott is remunerated higher than the industry median. What's more, Peter Truscott holds UK£875k worth of shares in the company in their own name.

Component

2022

2021

Proportion (2022)

Salary

UK£666k

UK£650k

38%

Other

UK£1.1m

UK£772k

62%

Total Compensation

UK£1.8m

UK£1.4m

100%

Talking in terms of the industry, salary represented approximately 41% of total compensation out of all the companies we analyzed, while other remuneration made up 59% of the pie. Our data reveals that Crest Nicholson Holdings allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

A Look at Crest Nicholson Holdings plc's Growth Numbers

Over the last three years, Crest Nicholson Holdings plc has shrunk its earnings per share by 32% per year. In the last year, its revenue is up 16%.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Crest Nicholson Holdings plc Been A Good Investment?

Crest Nicholson Holdings plc has generated a total shareholder return of 31% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Although the company has performed relatively well, we still think there are some areas that could be improved. Until EPS growth picks back up, we think shareholders may find it hard to justify increasing CEO pay given that they are already paid above industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 3 warning signs for Crest Nicholson Holdings that investors should look into moving forward.

Important note: Crest Nicholson Holdings 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.

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.

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