Under the guidance of CEO Pascal Soriot, AstraZeneca PLC (LON:AZN) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 11 May 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for AstraZeneca

Comparing AstraZeneca PLC's CEO Compensation With the industry

According to our data, AstraZeneca PLC has a market capitalization of UK£101b, and paid its CEO total annual compensation worth US$21m over the year to December 2020. That's a fairly small increase of 4.0% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.8m.

On comparing similar companies in the industry with market capitalizations above UK£5.7b, we found that the median total CEO compensation was US$9.7m. Hence, we can conclude that Pascal Soriot is remunerated higher than the industry median. Moreover, Pascal Soriot also holds UK£41m worth of AstraZeneca stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 52% of total compensation represents salary and 48% is other remuneration. It's interesting to note that AstraZeneca 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.

A Look at AstraZeneca PLC's Growth Numbers

AstraZeneca PLC's earnings per share (EPS) grew 11% per year over the last three years. It achieved revenue growth of 9.3% 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 modest revenue growth, suggesting the underlying business is healthy. 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.

Has AstraZeneca PLC Been A Good Investment?

Most shareholders would probably be pleased with AstraZeneca PLC for providing a total return of 62% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for AstraZeneca that investors should be aware of in a dynamic business environment.

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.

This article by Simply Wall St is general in nature. 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.

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