Yahoo Finance We Think Some Shareholders May Hesitate To Increase Experian plc's (LON:EXPN) CEO Compensation
Key Insights
Experian to hold its Annual General Meeting on 17th of July
Salary of US$1.31m is part of CEO Brian Cassin's total remuneration
Total compensation is 61% above industry average
Over the past three years, Experian's EPS grew by 14% and over the past three years, the total shareholder return was 28%
CEO Brian Cassin has done a decent job of delivering relatively good performance at Experian plc (LON:EXPN) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 17th of July. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for Experian
Comparing Experian plc's CEO Compensation With The Industry
According to our data, Experian plc has a market capitalization of UK£33b, and paid its CEO total annual compensation worth US$13m over the year to March 2024. That's a notable increase of 36% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.3m.
On comparing similar companies in the British Professional Services industry with market capitalizations above UK£6.2b, we found that the median total CEO compensation was US$7.8m. This suggests that Brian Cassin is paid more than the median for the industry. What's more, Brian Cassin holds UK£35m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2024 | 2023 | Proportion (2024) |
Salary | US$1.3m | US$1.3m | 10% |
Other | US$11m | US$8.0m | 90% |
Total Compensation | US$13m | US$9.2m | 100% |
On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. In Experian's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Experian plc's Growth
Experian plc has seen its earnings per share (EPS) increase by 14% a year over the past three years. In the last year, its revenue is up 7.2%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Experian plc Been A Good Investment?
Experian plc has served shareholders reasonably well, with a total return of 28% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
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.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Experian that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
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