Yahoo Finance It Looks Like Locality Planning Energy Holdings Limited's (ASX:LPE) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
Locality Planning Energy Holdings will host its Annual General Meeting on 23rd of April
CEO Damien Glanville's total compensation includes salary of AU$442.2k
The overall pay is 79% above the industry average
Locality Planning Energy Holdings' EPS declined by 23% over the past three years while total shareholder loss over the past three years was 68%
The results at Locality Planning Energy Holdings Limited (ASX:LPE) have been quite disappointing recently and CEO Damien Glanville bears some responsibility for this. At the upcoming AGM on 23rd of April, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.
Check out our latest analysis for Locality Planning Energy Holdings
How Does Total Compensation For Damien Glanville Compare With Other Companies In The Industry?
At the time of writing, our data shows that Locality Planning Energy Holdings Limited has a market capitalization of AU$9.7m, and reported total annual CEO compensation of AU$533k for the year to June 2023. We note that's an increase of 8.0% above last year. In particular, the salary of AU$442.2k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the Australia Electric Utilities industry with market capitalizations below AU$311m, reported a median total CEO compensation of AU$297k. Accordingly, our analysis reveals that Locality Planning Energy Holdings Limited pays Damien Glanville north of the industry median. Moreover, Damien Glanville also holds AU$646k worth of Locality Planning Energy Holdings stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$442k | AU$462k | 83% |
Other | AU$91k | AU$32k | 17% |
Total Compensation | AU$533k | AU$493k | 100% |
Talking in terms of the industry, salary represented approximately 56% of total compensation out of all the companies we analyzed, while other remuneration made up 44% of the pie. It's interesting to note that Locality Planning Energy Holdings pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Locality Planning Energy Holdings Limited's Growth
Over the last three years, Locality Planning Energy Holdings Limited has shrunk its earnings per share by 23% per year. Its revenue is down 34% over the previous year.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Locality Planning Energy Holdings Limited Been A Good Investment?
With a total shareholder return of -68% over three years, Locality Planning Energy Holdings Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 3 which are concerning) in Locality Planning Energy Holdings we think you should know about.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.
