Shareholders May Not Be So Generous With ANZ Group Holdings Limited's (ASX:ANZ) CEO Compensation And Here's Why

Key Insights

• ANZ Group Holdings' Annual General Meeting to take place on 19th of December
• CEO Shayne Elliott's total compensation includes salary of AU$2.47m
• The overall pay is 32% above the industry average
• Over the past three years, ANZ Group Holdings' EPS grew by 0.6% and over the past three years, the total shareholder return was 28%

Under the guidance of CEO Shayne Elliott, ANZ Group Holdings Limited (ASX:ANZ) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 19th of December. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for ANZ Group Holdings

How Does Total Compensation For Shayne Elliott Compare With Other Companies In The Industry?

According to our data, ANZ Group Holdings Limited has a market capitalization of AU$86b, and paid its CEO total annual compensation worth AU$5.7m over the year to September 2024. That's slightly lower by 7.9% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$2.5m.

In comparison with other companies in the Australian Banks industry with market capitalizations over AU$13b, the reported median total CEO compensation was AU$4.3m. Hence, we can conclude that Shayne Elliott is remunerated higher than the industry median. Moreover, Shayne Elliott also holds AU$16m worth of ANZ Group Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	AU$2.5m	AU$2.5m	43%
Other	AU$3.2m	AU$3.7m	57%
Total Compensation	AU$5.7m	AU$6.2m	100%

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. Although there is a difference in how total compensation is set, ANZ Group Holdings more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at ANZ Group Holdings Limited's Growth Numbers

ANZ Group Holdings Limited saw earnings per share stay pretty flat over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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.

Has ANZ Group Holdings Limited Been A Good Investment?

ANZ Group Holdings Limited has served shareholders reasonably well, with a total return of 28% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for ANZ Group Holdings that you should be aware of before investing.

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.

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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.