We Think Some Shareholders May Hesitate To Increase Stealth Group Holdings Ltd's (ASX:SGI) CEO Compensation

Key Insights

• Stealth Group Holdings' Annual General Meeting to take place on 14th of November
• Salary of AU$486.8k is part of CEO Mike Arnold's total remuneration
• The total compensation is 499% higher than the average for the industry
• Over the past three years, Stealth Group Holdings' EPS grew by 56% and over the past three years, the total shareholder return was 478%

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CEO Mike Arnold has done a decent job of delivering relatively good performance at Stealth Group Holdings Ltd (ASX:SGI) recently. As shareholders go into the upcoming AGM on 14th 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 may still want to keep CEO compensation within reason.

See our latest analysis for Stealth Group Holdings

Comparing Stealth Group Holdings Ltd's CEO Compensation With The Industry

According to our data, Stealth Group Holdings Ltd has a market capitalization of AU$90m, and paid its CEO total annual compensation worth AU$626k over the year to June 2025. That's a slight decrease of 6.1% on the prior year. In particular, the salary of AU$486.8k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Australian Trade Distributors industry with market capitalizations under AU$309m, the reported median total CEO compensation was AU$105k. Accordingly, our analysis reveals that Stealth Group Holdings Ltd pays Mike Arnold north of the industry median. Moreover, Mike Arnold also holds AU$7.8m worth of Stealth Group Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 63% of total compensation out of all the companies we analyzed, while other remuneration made up 37% of the pie. Stealth Group Holdings pays out 78% of remuneration in the form of a salary, significantly higher than the industry average. 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.

Stealth Group Holdings Ltd's Growth

Stealth Group Holdings Ltd's earnings per share (EPS) grew 56% per year over the last 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.

Has Stealth Group Holdings Ltd Been A Good Investment?

We think that the total shareholder return of 478%, over three years, would leave most Stealth Group Holdings Ltd shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Stealth Group Holdings that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.