Yahoo Finance CSR Limited's (ASX:CSR) CEO Compensation Is Looking A Bit Stretched At The Moment
Key Insights
CSR to hold its Annual General Meeting on 27th of June
Total pay for CEO Julie Coates includes AU$1.19m salary
The overall pay is 38% above the industry average
CSR's EPS grew by 17% over the past three years while total shareholder return over the past three years was 79%
Performance at CSR Limited (ASX:CSR) has been reasonably good and CEO Julie Coates has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 27th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for CSR
How Does Total Compensation For Julie Coates Compare With Other Companies In The Industry?
According to our data, CSR Limited has a market capitalization of AU$4.3b, and paid its CEO total annual compensation worth AU$3.7m over the year to March 2024. Notably, that's an increase of 18% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$1.2m.
On examining similar-sized companies in the Australian Basic Materials industry with market capitalizations between AU$3.0b and AU$9.6b, we discovered that the median CEO total compensation of that group was AU$2.7m. This suggests that Julie Coates is paid more than the median for the industry. What's more, Julie Coates holds AU$7.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2024 | 2023 | Proportion (2024) |
Salary | AU$1.2m | AU$1.2m | 32% |
Other | AU$2.5m | AU$2.0m | 68% |
Total Compensation | AU$3.7m | AU$3.1m | 100% |
On an industry level, roughly 47% of total compensation represents salary and 53% is other remuneration. CSR sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at CSR Limited's Growth Numbers
CSR Limited has seen its earnings per share (EPS) increase by 17% a year over the past three years. In the last year, its revenue changed by just 0.5%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 CSR Limited Been A Good Investment?
We think that the total shareholder return of 79%, over three years, would leave most CSR Limited shareholders smiling. 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.
In Summary...
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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for CSR that you should be aware of before investing.
Important note: CSR 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.
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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.
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