Shareholders Will Probably Hold Off On Increasing IPH Limited's (ASX:IPH) CEO Compensation For The Time Being

Key Insights

• IPH's Annual General Meeting to take place on 20th of November
• Salary of AU$1.38m is part of CEO Andrew Blattman's total remuneration
• Total compensation is 249% above industry average
• Over the past three years, IPH's EPS grew by 3.0% and over the past three years, the total loss to shareholders 52%

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Shareholders of IPH Limited (ASX:IPH) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 20th of November. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for IPH

How Does Total Compensation For Andrew Blattman Compare With Other Companies In The Industry?

Our data indicates that IPH Limited has a market capitalization of AU$973m, and total annual CEO compensation was reported as AU$2.3m for the year to June 2025. We note that's a decrease of 17% compared to last year. Notably, the salary which is AU$1.38m, represents most of the total compensation being paid.

In comparison with other companies in the Australian Professional Services industry with market capitalizations ranging from AU$612m to AU$2.4b, the reported median CEO total compensation was AU$654k. Accordingly, our analysis reveals that IPH Limited pays Andrew Blattman north of the industry median. Moreover, Andrew Blattman also holds AU$1.5m worth of IPH stock directly under their own name.

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. Our data reveals that IPH allocates salary more or less in line with the wider market. 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.

A Look at IPH Limited's Growth Numbers

IPH Limited has seen its earnings per share (EPS) increase by 3.0% a year over the past three years. It achieved revenue growth of 17% over the last year.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. 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 IPH Limited Been A Good Investment?

The return of -52% over three years would not have pleased IPH Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for IPH that investors should be aware of in a dynamic business environment.

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.