How Much Is Vp plc (LON:VP.) Paying Its CEO?

Neil Stothard is the CEO of Vp plc (LON:VP.), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Vp pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Vp

Comparing Vp plc's CEO Compensation With the industry

Our data indicates that Vp plc has a market capitalization of UK£254m, and total annual CEO compensation was reported as UK£699k for the year to March 2020. We note that's a decrease of 45% compared to last year. In particular, the salary of UK£366.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from UK£154m to UK£615m, we found that the median CEO total compensation was UK£577k. From this we gather that Neil Stothard is paid around the median for CEOs in the industry. Furthermore, Neil Stothard directly owns UK£5.1m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 52% of total compensation represents salary and 48% is other remuneration. There isn't a significant difference between Vp and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Vp plc's Growth Numbers

Over the last three years, Vp plc has shrunk its earnings per share by 8.0% per year. Its revenue is down 5.2% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Vp plc Been A Good Investment?

Since shareholders would have lost about 16% over three years, some Vp plc investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, Vp pays its CEO in line with similar-sized companies belonging to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Vp that investors should be aware of in a dynamic business environment.

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.

This article by Simply Wall St is general in nature. 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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