Midwich CEO Pay Faces Shareholder Scrutiny

The CEO Pay Puzzle: Why Midwich Group’s Shareholders Are Clutching Their Wallets
Picture this: a London-listed tech distributor, Midwich Group plc (ticker: MIDW), limping through a five-year share price nosedive of 39%, while its CEO, Stephen Fenby, pockets £475,000 a year. Cue the shareholder side-eye. As the company’s market cap hovers around £205 million—roughly the cost of a decent London townhouse—investors are staging a quiet revolt over executive pay. It’s a classic case of “show me the money” meets “show me the results,” and the numbers aren’t pretty.

The Midwich Malaise: A Company on Thin Ice

Midwich isn’t just any struggling firm; it’s a cautionary tale of what happens when executive rewards outpace performance. The share price? A rollercoaster between 170p and 440p in the past year. The earnings? A grim flip from £0.22 profit per share in 2019 to a £0.043 loss in 2020. Yet, Fenby’s paycheck remains untouched, sparking whispers of “reward for failure” in shareholder circles.
The dividend—a meager but stubborn 5.9% yield—is the only silver lining, a consolation prize for investors watching their stakes shrink. But let’s be real: a dividend alone won’t glue this Humpty Dumpty back together. With the AGM looming on May 13, 2025, shareholders are sharpening their pencils (and their questions). Will they demand pay cuts? A strategy overhaul? Or just a better explanation for why the CEO’s compensation isn’t tied to, you know, *actual success*?

The Great Pay Debate: Shareholders vs. The C-Suite

1. The “Skin in the Game” Principle

Investors aren’t just being stingy—they’re following a growing trend. Take Strix Group, another London-listed firm where shareholders recently balked at bloated CEO pay. The message is clear: if the ship’s sinking, the captain shouldn’t be the last one eating caviar. Midwich’s pay structure lacks teeth; Fenby’s rewards aren’t clawback-proof, meaning he gets paid even when the stock tanks. Shareholders want performance-linked pay, not a golden parachute for mediocrity.

2. The Dividend Dilemma

Yes, Midwich still pays dividends—a rare feat for a company in the red. But here’s the rub: that £0.075 per share payout might be masking deeper issues. Is the company prioritizing short-term shareholder appeasement over long-term stability? Critics argue the cash might be better spent on R&D or acquisitions to revive growth. Yet, cutting the dividend could spark panic, leaving Midwich stuck between a rock and a hard place.

3. The Black Friday Hangover Effect

Midwich’s woes aren’t entirely its fault. The post-pandemic tech slump hit distributors hard, and supply chain chaos didn’t help. But here’s where leadership matters: great CEOs pivot. Fenby’s playbook? Unclear. The company’s vague promise of a “stronger second half in 2025” sounds more like wishful thinking than a concrete plan. Shareholders aren’t just voting on pay—they’re voting on whether they trust this team to steer the ship.

The Verdict: AGM or Intervention?

As Midwich’s AGM approaches, the real question isn’t just about Fenby’s salary—it’s about accountability. Shareholders aren’t asking for miracles; they’re asking for alignment. If the stock keeps tanking, why should the CEO’s pay stay afloat? The dividend, while nice, is a Band-Aid on a bullet wound.
The broader lesson? Executive pay is no longer a rubber-stamp affair. Investors are watching, and they’re not afraid to vote “no” on packages that ignore reality. Midwich’s future hinges on whether Fenby and the board listen—or double down on the status quo. Either way, the mall mole’s verdict is in: when the numbers don’t add up, neither should the paychecks.