Yahoo Finance Shareholders May Be More Conservative With Steadfast Group Limited's (ASX:SDF) CEO Compensation For Now
CEO Robert Kelly has done a decent job of delivering relatively good performance at Steadfast Group Limited (ASX:SDF) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 21 October 2021. However, some shareholders will still be cautious of paying the CEO excessively.
View our latest analysis for Steadfast Group
Comparing Steadfast Group Limited's CEO Compensation With the industry
According to our data, Steadfast Group Limited has a market capitalization of AU$4.7b, and paid its CEO total annual compensation worth AU$4.4m over the year to June 2021. That's a notable increase of 12% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$1.1m.
In comparison with other companies in the industry with market capitalizations ranging from AU$2.7b to AU$8.6b, the reported median CEO total compensation was AU$3.1m. Hence, we can conclude that Robert Kelly is remunerated higher than the industry median. Furthermore, Robert Kelly directly owns AU$17m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2021 | 2020 | Proportion (2021) |
Salary | AU$1.1m | AU$1.1m | 24% |
Other | AU$3.4m | AU$2.8m | 76% |
Total Compensation | AU$4.4m | AU$4.0m | 100% |
Speaking on an industry level, nearly 42% of total compensation represents salary, while the remainder of 58% is other remuneration. Steadfast Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Steadfast Group Limited's Growth Numbers
Steadfast Group Limited has seen its earnings per share (EPS) increase by 14% a year over the past three years. It achieved revenue growth of 10% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Steadfast Group Limited Been A Good Investment?
Boasting a total shareholder return of 77% over three years, Steadfast Group Limited has done well by shareholders. 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.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for Steadfast Group that investors should look into moving forward.
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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