Yahoo Finance We Think The Compensation For Aristocrat Leisure Limited's (ASX:ALL) CEO Looks About Right
Shareholders may be wondering what CEO Trevor Croker plans to do to improve the less than great performance at Aristocrat Leisure Limited (ASX:ALL) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 24 February 2023. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.
See our latest analysis for Aristocrat Leisure
How Does Total Compensation For Trevor Croker Compare With Other Companies In The Industry?
According to our data, Aristocrat Leisure Limited has a market capitalization of AU$24b, and paid its CEO total annual compensation worth AU$7.1m over the year to September 2022. That's slightly lower by 5.8% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$1.8m.
For comparison, other companies in the Australian Hospitality industry with market capitalizations above AU$12b, reported a median total CEO compensation of AU$19m. This suggests that Trevor Croker is paid below the industry median. Furthermore, Trevor Croker directly owns AU$21m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2022 | 2021 | Proportion (2022) |
Salary | AU$1.8m | AU$1.8m | 26% |
Other | AU$5.3m | AU$5.8m | 74% |
Total Compensation | AU$7.1m | AU$7.5m | 100% |
Talking in terms of the industry, salary represented approximately 54% of total compensation out of all the companies we analyzed, while other remuneration made up 46% of the pie. Aristocrat Leisure pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Aristocrat Leisure Limited's Growth
Over the past three years, Aristocrat Leisure Limited has seen its earnings per share (EPS) grow by 9.6% per year. Its revenue is up 18% over the last year.
We think the revenue growth is good. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Aristocrat Leisure Limited Been A Good Investment?
With a three year total loss of 0.4% for the shareholders, Aristocrat Leisure Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
The lack lustre share price performance may have something to do with the flat earnings growth. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board and assess if the board's plan is likely to improve company performance.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Aristocrat Leisure.
Switching gears from Aristocrat Leisure, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
