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We Think Some Shareholders May Hesitate To Increase Super Retail Group Limited's (ASX:SUL) CEO Compensation

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CEO Anthony Heraghty has done a decent job of delivering relatively good performance at Super Retail Group Limited (ASX:SUL) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 20 October 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Super Retail Group

Comparing Super Retail Group Limited's CEO Compensation With the industry

At the time of writing, our data shows that Super Retail Group Limited has a market capitalization of AU$2.9b, and reported total annual CEO compensation of AU$3.4m for the year to June 2021. That's a notable increase of 79% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$1.1m.

In comparison with other companies in the industry with market capitalizations ranging from AU$1.4b to AU$4.3b, the reported median CEO total compensation was AU$1.9m. Hence, we can conclude that Anthony Heraghty is remunerated higher than the industry median. What's more, Anthony Heraghty holds AU$1.4m worth of shares in the company in their own name.

Component

2021

2020

Proportion (2021)

Salary

AU$1.1m

AU$1.1m

34%

Other

AU$2.2m

AU$813k

66%

Total Compensation

AU$3.4m

AU$1.9m

100%

On an industry level, around 37% of total compensation represents salary and 63% is other remuneration. Although there is a difference in how total compensation is set, Super Retail Group more or less reflects the market in terms of setting the salary. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

Super Retail Group Limited's Growth

Over the past three years, Super Retail Group Limited has seen its earnings per share (EPS) grow by 27% per year. Its revenue is up 22% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Super Retail Group Limited Been A Good Investment?

Boasting a total shareholder return of 59% over three years, Super Retail Group Limited has done well by shareholders. 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.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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 is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in Super Retail Group 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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