Key Insights

PZ Cussons' Annual General Meeting to take place on 23rd of November Total pay for CEO Jonathan Myers includes UK£607.8k salary The overall pay is 173% above the industry average PZ Cussons' EPS grew by 42% over the past three years  while total shareholder loss over the past three years was 35%

The underwhelming share price performance of PZ Cussons plc (LON:PZC) in the past three years would have disappointed many shareholders. 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 23rd of November could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for PZ Cussons

Comparing PZ Cussons plc's CEO Compensation With The Industry

Our data indicates that PZ Cussons plc has a market capitalization of UK£574m, and total annual CEO compensation was reported as UK£1.6m for the year to May 2023. That's a notable increase of 37% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£608k.

In comparison with other companies in the British Personal Products industry with market capitalizations ranging from UK£323m to UK£1.3b, the reported median CEO total compensation was UK£576k. This suggests that Jonathan Myers is paid more than the median for the industry.

Component 2023 2022 Proportion (2023) Salary UK£608k UK£588k 39% Other UK£964k UK£563k 61% Total Compensation UK£1.6m UK£1.2m 100%

On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. It's interesting to note that PZ Cussons allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

 ceo-compensation

PZ Cussons plc's Growth

Over the past three years, PZ Cussons plc has seen its earnings per share (EPS) grow by 42% per year. In the last year, its revenue is up 11%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 PZ Cussons plc Been A Good Investment?

The return of -35% over three years would not have pleased PZ Cussons plc shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders 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.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for PZ Cussons that investors should look into moving forward.

Switching gears from PZ Cussons, 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.

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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.