Yahoo Finance We Discuss Whether Aeeris Limited's (ASX:AER) CEO Is Due For A Pay Rise
The impressive results at Aeeris Limited (ASX:AER) recently will be great news for shareholders. At the upcoming AGM on 27 October 2021, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.
See our latest analysis for Aeeris
Comparing Aeeris Limited's CEO Compensation With the industry
Our data indicates that Aeeris Limited has a market capitalization of AU$13m, and total annual CEO compensation was reported as AU$128k for the year to June 2021. We note that's a decrease of 26% compared to last year. Notably, the salary of AU$128k is the entirety of the CEO compensation.
For comparison, other companies in the industry with market capitalizations below AU$268m, reported a median total CEO compensation of AU$363k. Accordingly, Aeeris pays its CEO under the industry median. What's more, Kerry Plowright holds AU$4.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2021 | 2020 | Proportion (2021) |
Salary | AU$128k | AU$126k | 100% |
Other | - | AU$47k | - |
Total Compensation | AU$128k | AU$173k | 100% |
On an industry level, around 51% of total compensation represents salary and 49% is other remuneration. On a company level, Aeeris prefers to reward its CEO through a salary, opting not to pay Kerry Plowright through non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Aeeris Limited's Growth Numbers
Over the past three years, Aeeris Limited has seen its earnings per share (EPS) grow by 94% per year. It achieved revenue growth of 11% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Aeeris Limited Been A Good Investment?
Boasting a total shareholder return of 177% over three years, Aeeris 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...
Aeeris pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 5 warning signs for Aeeris you should be aware of, and 1 of them can't be ignored.
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. 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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