RE: Xpf26 Sep 2024 11:40
WHY ARE INVESTORS IGNORED !
FROM SIMPLY WALL STREET
Here's Why Shareholders May Want To Be Cautious With Increasing XP Factory Plc's (LON:XPF) CEO Pay Packet
Key Insights
XP Factory will host its Annual General Meeting on 30th of September CEO Richard Harpham's total compensation includes salary of UK£295.0k The overall pay is 71% above the industry average
Over the past three years, XP Factory's EPS grew by 116% and over the past three years, the total loss to shareholders 64% In the past three years, the share price of XP Factory Plc (LON:XPF) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 30th of September. 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.
Check out our latest analysis for XP Factory
How Does Total Compensation For Richard Harpham Compare With Other Companies In The Industry?
According to our data, XP Factory Plc has a market capitalization of UK£23m, and paid its CEO total annual compensation worth UK£344k over the year to March 2024. Notably, that's an increase of 39% over the year before. Notably, the salary which is UK£295.0k, represents most of the total compensation being paid.
In comparison with other companies in the British Hospitality industry with market capitalizations under UK£150m, the reported median total CEO compensation was UK£201k. Accordingly, our analysis reveals that XP Factory Plc pays Richard Harpham north of the industry median. Moreover, Richard Harpham also holds UK£124k worth of XP Factory stock directly under their own name.
Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% is other remuneration. It's interesting to note that XP Factory pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Has XP Factory Plc Been A Good Investment?
With a total shareholder return of -64% over three years, XP Factory Plc shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
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
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