As many shareholders of Mattioli Woods plc (LON:MTW) will be aware, they have not made a gain on their investment in the past three years. Per share earnings growth is also lacking, despite revenue growth. Shareholders will have a chance to take their concerns to the board at the next AGM on 28 October 2022 and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

View our latest analysis for Mattioli Woods

How Does Total Compensation For Ian Mattioli Compare With Other Companies In The Industry?

Our data indicates that Mattioli Woods plc has a market capitalization of UK£309m, and total annual CEO compensation was reported as UK£1.8m for the year to May 2022. That's a notable increase of 20% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£592k.

In comparison with other companies in the industry with market capitalizations ranging from UK£177m to UK£708m, the reported median CEO total compensation was UK£1.4m. From this we gather that Ian Mattioli is paid around the median for CEOs in the industry. Furthermore, Ian Mattioli directly owns UK£18m worth of shares in the company, implying that they are deeply invested in the company's success.

Component 2022 2021 Proportion (2022) Salary UK£592k UK£372k 34% Other UK£1.2m UK£1.1m 66% Total Compensation UK£1.8m UK£1.5m 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. It's interesting to note that Mattioli Woods allocates a smaller portion of compensation to salary 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. ceo-compensation

Mattioli Woods plc's Growth

Mattioli Woods plc has reduced its earnings per share by 35% a year over the last three years. It achieved revenue growth of 73% over the last year.



The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Mattioli Woods plc Been A Good Investment?

Given the total shareholder loss of 7.9% over three years, many shareholders in Mattioli Woods plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Mattioli Woods (1 can't be ignored!) that you should be aware of before investing here.

Switching gears from Mattioli Woods, 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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