Yahoo Finanza Here's Why Some Shareholders May Not Be Too Generous With Mincon Group plc's (LON:MCON) CEO Compensation This Year
Key Insights
Mincon Group will host its Annual General Meeting on 2nd of May
CEO Joe Purcell's total compensation includes salary of €200.0k
The overall pay is 46% below the industry average
Over the past three years, Mincon Group's EPS fell by 19% and over the past three years, the total loss to shareholders 60%
The disappointing performance at Mincon Group plc (LON:MCON) will make some shareholders rather disheartened. The next AGM coming up on 2nd of May will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. We think most shareholders will probably pass the CEO compensation, based on what we gathered.
Check out our latest analysis for Mincon Group
Comparing Mincon Group plc's CEO Compensation With The Industry
According to our data, Mincon Group plc has a market capitalization of UK£93m, and paid its CEO total annual compensation worth €234k over the year to December 2023. That's a notable decrease of 25% on last year. In particular, the salary of €200.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the British Machinery industry with market capitalizations below UK£160m, we found that the median total CEO compensation was €433k. Accordingly, Mincon Group pays its CEO under the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €200k | €200k | 85% |
Other | €34k | €113k | 15% |
Total Compensation | €234k | €313k | 100% |
Talking in terms of the industry, salary represented approximately 52% of total compensation out of all the companies we analyzed, while other remuneration made up 48% of the pie. It's interesting to note that Mincon Group pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Mincon Group plc's Growth Numbers
Over the last three years, Mincon Group plc has shrunk its earnings per share by 19% per year. It saw its revenue drop 7.7% over the last year.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Mincon Group plc Been A Good Investment?
With a total shareholder return of -60% over three years, Mincon Group plc shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Mincon Group that investors should look into moving forward.
Important note: Mincon 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.
