Some Shareholders May find It Hard To Increase Ainsworth Game Technology Limited's (ASX:AGI) CEO Compensation This Year
In This Article:
Key Insights
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Ainsworth Game Technology's Annual General Meeting to take place on 29th of May
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CEO Harald Michael Neumann's total compensation includes salary of AU$902.5k
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The total compensation is similar to the average for the industry
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Over the past three years, Ainsworth Game Technology's EPS grew by 108% and over the past three years, the total shareholder return was 0.6%
CEO Harald Michael Neumann has done a decent job of delivering relatively good performance at Ainsworth Game Technology Limited (ASX:AGI) recently. As shareholders go into the upcoming AGM on 29th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.
Check out our latest analysis for Ainsworth Game Technology
How Does Total Compensation For Harald Michael Neumann Compare With Other Companies In The Industry?
At the time of writing, our data shows that Ainsworth Game Technology Limited has a market capitalization of AU$301m, and reported total annual CEO compensation of AU$1.6m for the year to December 2023. Notably, that's an increase of 42% over the year before. In particular, the salary of AU$902.5k, makes up a fairly large portion of the total compensation being paid to the CEO.
On comparing similar companies from the Australian Hospitality industry with market caps ranging from AU$150m to AU$600m, we found that the median CEO total compensation was AU$1.5m. From this we gather that Harald Michael Neumann is paid around the median for CEOs in the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$903k | AU$447k | 57% |
Other | AU$686k | AU$674k | 43% |
Total Compensation | AU$1.6m | AU$1.1m | 100% |
Talking in terms of the industry, salary represented approximately 55% of total compensation out of all the companies we analyzed, while other remuneration made up 45% of the pie. Our data reveals that Ainsworth Game Technology allocates salary more or less in line with the wider market. 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.
Ainsworth Game Technology Limited's Growth
Over the past three years, Ainsworth Game Technology Limited has seen its earnings per share (EPS) grow by 108% per year. It achieved revenue growth of 15% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.