We Think The Compensation For Premier Foods plc's (LON:PFD) CEO Looks About Right

editorial-team@simplywallst.com (Simply Wall St)

11 July 2024 at 5:52 am·3-min read

Key Insights

Premier Foods' Annual General Meeting to take place on 18th of July
Salary of UK£556.0k is part of CEO Alex Whitehouse's total remuneration
The overall pay is comparable to the industry average
Premier Foods' total shareholder return over the past three years was 63% while its EPS grew by 1.5% over the past three years

Performance at Premier Foods plc (LON:PFD) has been reasonably good and CEO Alex Whitehouse has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 18th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Premier Foods

How Does Total Compensation For Alex Whitehouse Compare With Other Companies In The Industry?

Our data indicates that Premier Foods plc has a market capitalization of UK£1.4b, and total annual CEO compensation was reported as UK£2.4m for the year to March 2024. That's a slight decrease of 7.2% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£556k.

On examining similar-sized companies in the British Food industry with market capitalizations between UK£778m and UK£2.5b, we discovered that the median CEO total compensation of that group was UK£2.4m. This suggests that Premier Foods remunerates its CEO largely in line with the industry average. Moreover, Alex Whitehouse also holds UK£982k worth of Premier Foods stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	UK£556k	UK£529k	23%
Other	UK£1.9m	UK£2.1m	77%
Total Compensation	UK£2.4m	UK£2.6m	100%

Talking in terms of the industry, salary represented approximately 47% of total compensation out of all the companies we analyzed, while other remuneration made up 53% of the pie. Premier Foods 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 Premier Foods plc's Growth Numbers

Premier Foods plc has seen its earnings per share (EPS) increase by 1.5% a year over the past three years. In the last year, its revenue is up 13%.

This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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 Premier Foods plc Been A Good Investment?

Boasting a total shareholder return of 63% over three years, Premier Foods plc has done well by shareholders. 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...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

Shareholders may want to check for free if Premier Foods insiders are buying or selling shares.

Important note: Premier Foods 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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

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Key Insights

How Does Total Compensation For Alex Whitehouse Compare With Other Companies In The Industry?

A Look at Premier Foods plc's Growth Numbers

Has Premier Foods plc Been A Good Investment?

To Conclude...

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