Key Insights

• NEXTDC will host its Annual General Meeting on 24th of November

• CEO Craig Scroggie's total compensation includes salary of AU$1.30m

• The overall pay is 56% above the industry average

• NEXTDC's EPS grew by 78% over the past three years while total shareholder return over the past three years was 7.8%

Under the guidance of CEO Craig Scroggie, NEXTDC Limited (ASX:NXT) has performed reasonably well recently. As shareholders go into the upcoming AGM on 24th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for NEXTDC

How Does Total Compensation For Craig Scroggie Compare With Other Companies In The Industry?

At the time of writing, our data shows that NEXTDC Limited has a market capitalization of AU$6.7b, and reported total annual CEO compensation of AU$3.2m for the year to June 2023. That's a notable decrease of 10% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$1.3m.

For comparison, other companies in the Australian IT industry with market capitalizations ranging between AU$3.1b and AU$9.8b had a median total CEO compensation of AU$2.0m. Hence, we can conclude that Craig Scroggie is remunerated higher than the industry median. Furthermore, Craig Scroggie directly owns AU$5.8m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. In NEXTDC's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

NEXTDC Limited's Growth

NEXTDC Limited has seen its earnings per share (EPS) increase by 78% a year over the past three years. Its revenue is up 25% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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.