This Is Why REACT Group PLC's (LON:REAT) CEO Compensation Looks Appropriate

In This Article:

Key Insights

  • REACT Group to hold its Annual General Meeting on 28th of March

  • Salary of UK£116.0k is part of CEO Shaun Doak's total remuneration

  • The total compensation is 49% less than the average for the industry

  • Over the past three years, REACT Group's EPS fell by 52% and over the past three years, the total loss to shareholders 36%

The performance at REACT Group PLC (LON:REAT) has been rather lacklustre of late and shareholders may be wondering what CEO Shaun Doak is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 28th of March. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

Check out our latest analysis for REACT Group

Comparing REACT Group PLC's CEO Compensation With The Industry

At the time of writing, our data shows that REACT Group PLC has a market capitalization of UK£14m, and reported total annual CEO compensation of UK£144k for the year to September 2023. That's a notable increase of 26% on last year. In particular, the salary of UK£116.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the British Commercial Services industry with market capitalizations below UK£158m, reported a median total CEO compensation of UK£282k. In other words, REACT Group pays its CEO lower than the industry median.

Component

2023

2022

Proportion (2023)

Salary

UK£116k

UK£87k

81%

Other

UK£28k

UK£27k

19%

Total Compensation

UK£144k

UK£114k

100%

Talking in terms of the industry, salary represented approximately 64% of total compensation out of all the companies we analyzed, while other remuneration made up 36% of the pie. According to our research, REACT Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
ceo-compensation

A Look at REACT Group PLC's Growth Numbers

REACT Group PLC has reduced its earnings per share by 52% a year over the last three years. In the last year, its revenue is up 43%.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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.