Increases to SRG Global Limited's (ASX:SRG) CEO Compensation Might Cool off for now

Key Insights

• SRG Global's Annual General Meeting to take place on 12th of October
• Salary of AU$1.03m is part of CEO David Macgeorge's total remuneration
• The overall pay is 80% above the industry average
• SRG Global's total shareholder return over the past three years was 122% while its EPS grew by 94% over the past three years

CEO David Macgeorge has done a decent job of delivering relatively good performance at SRG Global Limited (ASX:SRG) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 12th of October. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for SRG Global

Comparing SRG Global Limited's CEO Compensation With The Industry

According to our data, SRG Global Limited has a market capitalization of AU$339m, and paid its CEO total annual compensation worth AU$2.3m over the year to June 2023. We note that's a small decrease of 3.2% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$1.0m.

In comparison with other companies in the Australian Construction industry with market capitalizations ranging from AU$158m to AU$632m, the reported median CEO total compensation was AU$1.3m. Hence, we can conclude that David Macgeorge is remunerated higher than the industry median. Furthermore, David Macgeorge directly owns AU$3.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	AU$1.0m	AU$1.1m	45%
Other	AU$1.3m	AU$1.3m	55%
Total Compensation	AU$2.3m	AU$2.4m	100%

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. In SRG Global's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

SRG Global Limited's Growth

SRG Global Limited's earnings per share (EPS) grew 94% per year over the last three years. In the last year, its revenue is up 26%.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 SRG Global Limited Been A Good Investment?

Most shareholders would probably be pleased with SRG Global Limited for providing a total return of 122% 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.

To Conclude...

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, 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 2 warning signs for SRG Global that investors should think about before committing capital to this stock.

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.