As Kier Group plc prepares for its Annual General Meeting (AGM) on November 16, attention is drawn to the compensation of CEO Andrew O. Davies, whose leadership has been pivotal in driving the company's strong performance. Davies' total compensation for the year ending June 2023 amounts to £2.2 million, including a salary component of £750K. He also holds £1.2 million worth of shares in Kier Group.
The CEO's remuneration aligns with the median £1.9 million compensation for CEOs of similar-sized British construction companies, with the salary typically constituting approximately 37% of total compensation. Despite his above-average remuneration for a company with a market capitalization of £465 million, shareholders may find comfort in the company's impressive financial performance.
Under Davies' stewardship, Kier Group has seen significant growth, marked by a 121% annual increase in Earnings Per Share (EPS) over the past three years and a 7.5% revenue boost in the last year alone. This strong performance has resulted in a robust 107% total return for shareholders over three years.
Today, as shareholders review financial results and deliberate future strategies ahead of the AGM, Davies' compensation is expected to be part of the discussion. However, given Kier Group's strong performance, his remuneration does not seem excessive.
The upcoming AGM is expected to shift focus from executive remuneration towards strategic decisions that will shape Kier Group's future. While acknowledging the company's exciting prospects, investors are advised to consider all factors, including the importance of unencumbered balance sheets and high returns.
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