Yahoo Finance We Discuss Whether Informa plc's (LON:INF) CEO Is Due For A Pay Rise
Key Insights
Informa to hold its Annual General Meeting on 21st of June
Total pay for CEO Stephen Carter includes UK£902.2k salary
The overall pay is 68% below the industry average
Informa's total shareholder return over the past three years was 68% while its EPS grew by 125% over the past three years
Shareholders will be pleased by the impressive results for Informa plc (LON:INF) recently and CEO Stephen Carter has played a key role. At the upcoming AGM on 21st of June, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
See our latest analysis for Informa
Comparing Informa plc's CEO Compensation With The Industry
Our data indicates that Informa plc has a market capitalization of UK£11b, and total annual CEO compensation was reported as UK£4.2m for the year to December 2023. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£902k.
In comparison with other companies in the British Media industry with market capitalizations over UK£6.3b, the reported median total CEO compensation was UK£13m. This suggests that Stephen Carter is paid below the industry median. Moreover, Stephen Carter also holds UK£13m worth of Informa stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | UK£902k | UK£876k | 22% |
Other | UK£3.3m | UK£3.2m | 78% |
Total Compensation | UK£4.2m | UK£4.1m | 100% |
Speaking on an industry level, nearly 49% of total compensation represents salary, while the remainder of 51% is other remuneration. Informa pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Informa plc's Growth
Informa plc has seen its earnings per share (EPS) increase by 125% a year over the past three years. Its revenue is up 41% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Informa plc Been A Good Investment?
Boasting a total shareholder return of 68% over three years, Informa plc has done well by shareholders. 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...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Informa that investors should be aware of in a dynamic business environment.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
