Yahoo Finance Most Shareholders Will Probably Agree With EBOS Group Limited's (NZSE:EBO) CEO Compensation
Performance at EBOS Group Limited (NZSE:EBO) has been reasonably good and CEO John Cullity has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 27 October 2022. We present our case of why we think CEO compensation looks fair.
Check out our latest analysis for EBOS Group
Comparing EBOS Group Limited's CEO Compensation With The Industry
At the time of writing, our data shows that EBOS Group Limited has a market capitalization of NZ$6.9b, and reported total annual CEO compensation of AU$5.9m for the year to June 2022. That's a notable increase of 58% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$1.4m.
On comparing similar companies from the same industry with market caps ranging from NZ$3.5b to NZ$11b, we found that the median CEO total compensation was AU$6.0m. So it looks like EBOS Group compensates John Cullity in line with the median for the industry. Moreover, John Cullity also holds NZ$870k worth of EBOS Group stock directly under their own name.
Component | 2022 | 2021 | Proportion (2022) |
Salary | AU$1.4m | AU$1.4m | 24% |
Other | AU$4.4m | AU$2.4m | 76% |
Total Compensation | AU$5.9m | AU$3.7m | 100% |
Talking in terms of the industry, salary represented approximately 49% of total compensation out of all the companies we analyzed, while other remuneration made up 51% of the pie. EBOS Group pays a modest slice of remuneration through salary, as compared 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 EBOS Group Limited's Growth Numbers
EBOS Group Limited has seen its earnings per share (EPS) increase by 5.8% a year over the past three years. Its revenue is up 17% over the last year.
We would argue that the modest growth in revenue is a notable positive. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has EBOS Group Limited Been A Good Investment?
Most shareholders would probably be pleased with EBOS Group Limited for providing a total return of 60% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for EBOS Group that investors should be aware of in a dynamic business environment.
Important note: EBOS Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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