CEO G. Hooper has done a decent job of delivering relatively good performance at The Alumasc Group plc (LON:ALU) recently. As shareholders go into the upcoming AGM on 21 October 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Alumasc Group

Comparing The Alumasc Group plc's CEO Compensation With the industry

Our data indicates that The Alumasc Group plc has a market capitalization of UK£82m, and total annual CEO compensation was reported as UK£565k for the year to June 2021. Notably, that's an increase of 61% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£274k.

On comparing similar-sized companies in the industry with market capitalizations below UK£146m, we found that the median total CEO compensation was UK£233k. This suggests that G. Hooper is paid more than the median for the industry. Furthermore, G. Hooper directly owns UK£2.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. Alumasc Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at The Alumasc Group plc's Growth Numbers

Over the past three years, The Alumasc Group plc has seen its earnings per share (EPS) grow by 24% per year. Its revenue is up 19% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has The Alumasc Group plc Been A Good Investment?

We think that the total shareholder return of 106%, over three years, would leave most The Alumasc Group plc shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for Alumasc Group you should be aware of, and 1 of them makes us a bit uncomfortable.

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.

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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