Yahoo Finance Here's Why Shareholders Will Not Be Complaining About Vertu Motors plc's (LON:VTU) CEO Pay Packet
Key Insights
Vertu Motors will host its Annual General Meeting on 25th of June
CEO Robert Forrester's total compensation includes salary of UK£415.0k
The overall pay is comparable to the industry average
Over the past three years, Vertu Motors' EPS grew by 20% and over the past three years, the total shareholder return was 84%
It would be hard to discount the role that CEO Robert Forrester has played in delivering the impressive results at Vertu Motors plc (LON:VTU) recently. Coming up to the next AGM on 25th of June, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and 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 Vertu Motors
Comparing Vertu Motors plc's CEO Compensation With The Industry
At the time of writing, our data shows that Vertu Motors plc has a market capitalization of UK£262m, and reported total annual CEO compensation of UK£880k for the year to February 2024. We note that's a decrease of 19% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£415k.
In comparison with other companies in the British Specialty Retail industry with market capitalizations ranging from UK£157m to UK£630m, the reported median CEO total compensation was UK£1.1m. This suggests that Vertu Motors remunerates its CEO largely in line with the industry average. Furthermore, Robert Forrester directly owns UK£5.9m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2024 | 2023 | Proportion (2024) |
Salary | UK£415k | UK£415k | 47% |
Other | UK£465k | UK£673k | 53% |
Total Compensation | UK£880k | UK£1.1m | 100% |
On an industry level, roughly 58% of total compensation represents salary and 42% is other remuneration. It's interesting to note that Vertu Motors allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Vertu Motors plc's Growth Numbers
Vertu Motors plc has seen its earnings per share (EPS) increase by 20% a year over the past three years. It achieved revenue growth of 18% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Vertu Motors plc Been A Good Investment?
We think that the total shareholder return of 84%, over three years, would leave most Vertu Motors 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.
In Summary...
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 can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Vertu Motors that you should be aware of before investing.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
