Increases to Acrow Formwork and Construction Services Limited's (ASX:ACF) CEO Compensation Might Cool off for now

Key Insights

• Acrow Formwork and Construction Services will host its Annual General Meeting on 14th of November
• Total pay for CEO Steven Boland includes AU$530.0k salary
• Total compensation is 139% above industry average
• Acrow Formwork and Construction Services' EPS grew by 77% over the past three years while total shareholder return over the past three years was 194%

CEO Steven Boland has done a decent job of delivering relatively good performance at Acrow Formwork and Construction Services Limited (ASX:ACF) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 14th of November. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Acrow Formwork and Construction Services

Comparing Acrow Formwork and Construction Services Limited's CEO Compensation With The Industry

According to our data, Acrow Formwork and Construction Services Limited has a market capitalization of AU$245m, and paid its CEO total annual compensation worth AU$1.6m over the year to June 2023. Notably, that's an increase of 62% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$530k.

On comparing similar companies from the Australian Trade Distributors industry with market caps ranging from AU$155m to AU$622m, we found that the median CEO total compensation was AU$669k. This suggests that Steven Boland is paid more than the median for the industry. Furthermore, Steven Boland directly owns AU$6.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	AU$530k	AU$530k	33%
Other	AU$1.1m	AU$457k	67%
Total Compensation	AU$1.6m	AU$987k	100%

On an industry level, around 53% of total compensation represents salary and 47% is other remuneration. Acrow Formwork and Construction Services pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Acrow Formwork and Construction Services Limited's Growth Numbers

Acrow Formwork and Construction Services Limited's earnings per share (EPS) grew 77% per year over the last three years. Its revenue is up 6.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Acrow Formwork and Construction Services Limited Been A Good Investment?

We think that the total shareholder return of 194%, over three years, would leave most Acrow Formwork and Construction Services Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Acrow Formwork and Construction Services (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Acrow Formwork and Construction Services, 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.

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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.