Here's Why Shareholders Should Examine SSH Group Limited's (ASX:SSH) CEO Compensation Package More Closely

Key Insights

• SSH Group to hold its Annual General Meeting on 29th of November
• CEO Daniel Cowley-Cooper's total compensation includes salary of AU$346.0k
• The overall pay is comparable to the industry average
• Over the past three years, SSH Group's EPS fell by 40% and over the past three years, the total loss to shareholders 64%

Shareholders will probably not be too impressed with the underwhelming results at SSH Group Limited (ASX:SSH) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 29th of November. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for SSH Group

Comparing SSH Group Limited's CEO Compensation With The Industry

At the time of writing, our data shows that SSH Group Limited has a market capitalization of AU$5.9m, and reported total annual CEO compensation of AU$404k for the year to June 2024. We note that's an increase of 10% above last year. Notably, the salary which is AU$346.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Australian Commercial Services industry with market capitalizations below AU$307m, we found that the median total CEO compensation was AU$469k. So it looks like SSH Group compensates Daniel Cowley-Cooper in line with the median for the industry. Furthermore, Daniel Cowley-Cooper directly owns AU$1.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	AU$346k	AU$307k	86%
Other	AU$58k	AU$59k	14%
Total Compensation	AU$404k	AU$366k	100%

On an industry level, roughly 58% of total compensation represents salary and 42% is other remuneration. SSH Group pays out 86% 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.

A Look at SSH Group Limited's Growth Numbers

Over the last three years, SSH Group Limited has shrunk its earnings per share by 40% per year. It saw its revenue drop 2.7% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has SSH Group Limited Been A Good Investment?

Few SSH Group Limited shareholders would feel satisfied with the return of -64% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for SSH Group that investors should look into moving forward.

Switching gears from SSH Group, 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.