Increases to International Personal Finance plc’s (LON:IPF) CEO Compensation Might Cool off for now

Key Insights

• International Personal Finance will host its Annual General Meeting on 2nd of May

• CEO Gerard Ryan’s total compensation includes salary of UK£581.0k

• Total compensation is 245% above industry average

• Over the past three years, International Personal Finance’s EPS grew by 64% and over the past three years, the total shareholder return was 6.2%

Under the guidance of CEO Gerard Ryan, International Personal Finance plc (LON:IPF) has performed reasonably well recently. As shareholders go into the upcoming AGM on 2nd of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for International Personal Finance

Comparing International Personal Finance plc’s CEO Compensation With The Industry

At the time of writing, our data shows that International Personal Finance plc has a market capitalization of UK£237m, and reported total annual CEO compensation of UK£2.4m for the year to December 2023. We note that’s an increase of 72% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£581k.

On examining similar-sized companies in the British Consumer Finance industry with market capitalizations between UK£80m and UK£320m, we discovered that the median CEO total compensation of that group was UK£701k. This suggests that Gerard Ryan is paid more than the median for the industry. Furthermore, Gerard Ryan directly owns UK£2.0m worth of shares in the company.

On an industry level, around 58% of total compensation represents salary and 42% is other remuneration. It’s interesting to note that International Personal Finance 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.

A Look at International Personal Finance plc’s Growth Numbers

Over the past three years, International Personal Finance plc has seen its earnings per share (EPS) grow by 64% per year. It achieved revenue growth of 19% over the last year.

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. 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.

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Has International Personal Finance plc Been A Good Investment?

International Personal Finance plc has not done too badly by shareholders, with a total return of 6.2%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary…

The company’s decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company’s key performance areas. We did our research and identified 2 warning signs (and 1 which shouldn’t be ignored) in International Personal Finance we think you should know about.

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.

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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.