It's Unlikely That Coventry Group Ltd's (ASX:CYG) CEO Will See A Huge Pay Rise This Year

Key Insights

• Coventry Group to hold its Annual General Meeting on 19th of October
• Total pay for CEO Robert Bulluss includes AU$474.2k salary
• The overall pay is 45% above the industry average
• Over the past three years, Coventry Group's EPS grew by 29% and over the past three years, the total shareholder return was 46%

Under the guidance of CEO Robert Bulluss, Coventry Group Ltd (ASX:CYG) has performed reasonably well recently. As shareholders go into the upcoming AGM on 19th of October, 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 Coventry Group

How Does Total Compensation For Robert Bulluss Compare With Other Companies In The Industry?

According to our data, Coventry Group Ltd has a market capitalization of AU$102m, and paid its CEO total annual compensation worth AU$835k over the year to June 2023. We note that's a decrease of 15% compared to last year. We note that the salary of AU$474.2k makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar-sized companies in the Australian Trade Distributors industry with market capitalizations below AU$318m, we found that the median total CEO compensation was AU$575k. Hence, we can conclude that Robert Bulluss is remunerated higher than the industry median. What's more, Robert Bulluss holds AU$1.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	AU$474k	AU$441k	57%
Other	AU$361k	AU$537k	43%
Total Compensation	AU$835k	AU$978k	100%

Talking in terms of the industry, salary represented approximately 53% of total compensation out of all the companies we analyzed, while other remuneration made up 47% of the pie. Although there is a difference in how total compensation is set, Coventry Group more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Coventry Group Ltd's Growth Numbers

Coventry Group Ltd's earnings per share (EPS) grew 29% per year over the last three years. Its revenue is up 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, 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 Coventry Group Ltd Been A Good Investment?

Most shareholders would probably be pleased with Coventry Group Ltd for providing a total return of 46% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Coventry Group that investors should look into moving forward.

Important note: Coventry Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.