Yahoo Finance Here's Why Shareholders Will Not Be Complaining About Ridley Corporation Limited's (ASX:RIC) CEO Pay Packet
The performance at Ridley Corporation Limited (ASX:RIC) has been quite strong recently and CEO Quinton Hildebrand has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 23 November 2022. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
See our latest analysis for Ridley
How Does Total Compensation For Quinton Hildebrand Compare With Other Companies In The Industry?
According to our data, Ridley Corporation Limited has a market capitalization of AU$626m, and paid its CEO total annual compensation worth AU$1.6m over the year to June 2022. That's a modest increase of 4.4% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$673k.
In comparison with other companies in the industry with market capitalizations ranging from AU$296m to AU$1.2b, the reported median CEO total compensation was AU$1.5m. From this we gather that Quinton Hildebrand is paid around the median for CEOs in the industry. Moreover, Quinton Hildebrand also holds AU$2.6m worth of Ridley stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | AU$673k | AU$675k | 42% |
Other | AU$922k | AU$852k | 58% |
Total Compensation | AU$1.6m | AU$1.5m | 100% |
Speaking on an industry level, nearly 76% of total compensation represents salary, while the remainder of 24% is other remuneration. It's interesting to note that Ridley allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Ridley Corporation Limited's Growth
Ridley Corporation Limited's earnings per share (EPS) grew 20% per year over the last three years. It achieved revenue growth of 13% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Ridley Corporation Limited Been A Good Investment?
Most shareholders would probably be pleased with Ridley Corporation Limited for providing a total return of 86% over three years. 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.
In Summary...
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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Ridley that investors should think about before committing capital to this stock.
Important note: Ridley 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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