Shareholders Will Probably Hold Off On Increasing DCC plc's (LON:DCC) CEO Compensation For The Time Being

Key Insights

• DCC's Annual General Meeting to take place on 10th of July
• Total pay for CEO Donal Murphy includes UK£824.1k salary
• The overall pay is 42% above the industry average
• DCC's total shareholder return over the past three years was 5.8% while its EPS was down 13% over the past three years

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The share price of DCC plc (LON:DCC) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 10th of July. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

Check out our latest analysis for DCC

How Does Total Compensation For Donal Murphy Compare With Other Companies In The Industry?

Our data indicates that DCC plc has a market capitalization of UK£4.7b, and total annual CEO compensation was reported as UK£3.6m for the year to March 2025. That's a notable increase of 28% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£824k.

For comparison, other companies in the the United Kingdom Industrials industry with market capitalizations ranging between UK£2.9b and UK£8.8b had a median total CEO compensation of UK£2.6m. Accordingly, our analysis reveals that DCC plc pays Donal Murphy north of the industry median. Furthermore, Donal Murphy directly owns UK£8.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2025	2024	Proportion (2025)
Salary	UK£824k	UK£809k	23%
Other	UK£2.8m	UK£2.0m	77%
Total Compensation	UK£3.6m	UK£2.8m	100%

On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. DCC sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

DCC plc's Growth

Over the last three years, DCC plc has shrunk its earnings per share by 13% per year. It saw its revenue drop 4.5% over the last 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 DCC plc Been A Good Investment?

DCC plc has generated a total shareholder return of 5.8% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. 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...

While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may 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 DCC that investors should look into moving forward.

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.