Yahoo Finance It's Unlikely That Costain Group PLC's (LON:COST) CEO Will See A Huge Pay Rise This Year
Key Insights
Costain Group to hold its Annual General Meeting on 16th of May
CEO Alex Vaughan's total compensation includes salary of UK£463.2k
The overall pay is 107% above the industry average
Over the past three years, Costain Group's EPS grew by 124% and over the past three years, the total shareholder return was 48%
Under the guidance of CEO Alex Vaughan, Costain Group PLC (LON:COST) 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 16th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
Check out our latest analysis for Costain Group
How Does Total Compensation For Alex Vaughan Compare With Other Companies In The Industry?
According to our data, Costain Group PLC has a market capitalization of UK£231m, and paid its CEO total annual compensation worth UK£1.4m over the year to December 2023. We note that's an increase of 12% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£463k.
For comparison, other companies in the British Construction industry with market capitalizations ranging between UK£80m and UK£319m had a median total CEO compensation of UK£655k. This suggests that Alex Vaughan is paid more than the median for the industry. Furthermore, Alex Vaughan directly owns UK£474k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | UK£463k | UK£443k | 34% |
Other | UK£895k | UK£774k | 66% |
Total Compensation | UK£1.4m | UK£1.2m | 100% |
Speaking on an industry level, nearly 35% of total compensation represents salary, while the remainder of 65% is other remuneration. There isn't a significant difference between Costain Group and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Costain Group PLC's Growth
Costain Group PLC has seen its earnings per share (EPS) increase by 124% a year over the past three years. Its revenue is down 6.3% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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.
Has Costain Group PLC Been A Good Investment?
Most shareholders would probably be pleased with Costain Group PLC for providing a total return of 48% over three years. 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.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Costain Group that you should be aware of before investing.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.
