Yahoo Finance Shareholders May Be More Conservative With Carly Holdings Limited's (ASX:CL8) CEO Compensation For Now
Key Insights
Carly Holdings will host its Annual General Meeting on 30th of November
Total pay for CEO Chris Noone includes AU$251.3k salary
Total compensation is 251% above industry average
Over the past three years, Carly Holdings' EPS grew by 70% and over the past three years, the total loss to shareholders 91%
In the past three years, the share price of Carly Holdings Limited (ASX:CL8) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 30th of November. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.
See our latest analysis for Carly Holdings
Comparing Carly Holdings Limited's CEO Compensation With The Industry
Our data indicates that Carly Holdings Limited has a market capitalization of AU$4.6m, and total annual CEO compensation was reported as AU$364k for the year to June 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of AU$251.3k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the Australian Transportation industry with market capitalizations below AU$304m, we found that the median total CEO compensation was AU$104k. Hence, we can conclude that Chris Noone is remunerated higher than the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$251k | AU$238k | 69% |
Other | AU$113k | AU$121k | 31% |
Total Compensation | AU$364k | AU$359k | 100% |
On an industry level, roughly 64% of total compensation represents salary and 36% is other remuneration. There isn't a significant difference between Carly Holdings and the broader market, in terms of salary allocation in the overall compensation package. 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 Carly Holdings Limited's Growth Numbers
Carly Holdings Limited's earnings per share (EPS) grew 70% per year over the last three years. Its revenue is up 68% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Carly Holdings Limited Been A Good Investment?
With a total shareholder return of -91% over three years, Carly Holdings Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 1 which is a bit concerning) in Carly Holdings we think you should know about.
Important note: Carly Holdings 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.
