As many shareholders of Benchmark Holdings plc (LON:BMK) will be aware, they have not made a gain on their investment in the past three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 16 February 2023 could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Benchmark Holdings

How Does Total Compensation For Trond Williksen Compare With Other Companies In The Industry?

At the time of writing, our data shows that Benchmark Holdings plc has a market capitalization of UK£273m, and reported total annual CEO compensation of UK£841k for the year to September 2022. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£410k.

On examining similar-sized companies in the British Food industry with market capitalizations between UK£165m and UK£660m, we discovered that the median CEO total compensation of that group was UK£832k. So it looks like Benchmark Holdings compensates Trond Williksen in line with the median for the industry. Moreover, Trond Williksen also holds UK£100k worth of Benchmark Holdings stock directly under their own name.

Component 2022 2021 Proportion (2022) Salary UK£410k UK£403k 49% Other UK£431k UK£414k 51% Total Compensation UK£841k UK£818k 100%

Speaking on an industry level, nearly 48% of total compensation represents salary, while the remainder of 52% is other remuneration. There isn't a significant difference between Benchmark Holdings and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

 ceo-compensation

Benchmark Holdings plc's Growth

Benchmark Holdings plc's earnings per share (EPS) grew 54% per year over the last three years. In the last year, its revenue is up 27%.

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. 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 Benchmark Holdings plc Been A Good Investment?

With a three year total loss of 13% for the shareholders, Benchmark Holdings plc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Benchmark Holdings that investors should think about before committing capital to this stock.

Switching gears from Benchmark Holdings, if you're hunting for a pristine balance sheet and premium returns, this freelist of high return, low debt companies is a great place to look.

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.

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