Yahoo Finance Autosports Group Limited's (ASX:ASG) CEO Will Probably Have Their Compensation Approved By Shareholders
The performance at Autosports Group Limited (ASX:ASG) has been quite strong recently and CEO Nick Pagent has played a role in it. Coming up to the next AGM on 25 November 2022, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.
See our latest analysis for Autosports Group
How Does Total Compensation For Nick Pagent Compare With Other Companies In The Industry?
According to our data, Autosports Group Limited has a market capitalization of AU$413m, and paid its CEO total annual compensation worth AU$1.6m over the year to June 2022. We note that's an increase of 14% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$594k.
On examining similar-sized companies in the industry with market capitalizations between AU$150m and AU$601m, we discovered that the median CEO total compensation of that group was AU$1.3m. This suggests that Autosports Group remunerates its CEO largely in line with the industry average. What's more, Nick Pagent holds AU$427k worth of shares in the company in their own name.
Component | 2022 | 2021 | Proportion (2022) |
Salary | AU$594k | AU$538k | 36% |
Other | AU$1.0m | AU$909k | 64% |
Total Compensation | AU$1.6m | AU$1.4m | 100% |
Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. In Autosports Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Autosports Group Limited's Growth Numbers
Autosports Group Limited has seen its earnings per share (EPS) increase by 68% a year over the past three years. Its revenue is down 5.2% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Autosports Group Limited Been A Good Investment?
Boasting a total shareholder return of 41% over three years, Autosports Group Limited has done well by shareholders. 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.
To Conclude...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Autosports Group you should be aware of, and 1 of them is potentially serious.
Switching gears from Autosports Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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