Stock Analysis

Here's Why Audio Pixels Holdings Limited's (ASX:AKP) CEO May Not Expect A Pay Rise This Year

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The disappointing performance at Audio Pixels Holdings Limited (ASX:AKP) will make some shareholders rather disheartened. The next AGM coming up on 24 May 2021 will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. The data we gathered below shows that CEO compensation looks acceptable for now.

See our latest analysis for Audio Pixels Holdings

Comparing Audio Pixels Holdings Limited's CEO Compensation With the industry

According to our data, Audio Pixels Holdings Limited has a market capitalization of AU$545m, and paid its CEO total annual compensation worth AU$67k over the year to December 2020. This was the same as last year. Notably, the salary which is AU$61.0k, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between AU$258m and AU$1.0b had a median total CEO compensation of AU$878k. That is to say, Fred Bart is paid under the industry median. Moreover, Fred Bart also holds AU$115m worth of Audio Pixels Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20202019Proportion (2020)
Salary AU$61k AU$61k 91%
Other AU$5.8k AU$5.8k 9%
Total CompensationAU$67k AU$67k100%

On an industry level, around 81% of total compensation represents salary and 19% is other remuneration. Audio Pixels Holdings pays out 91% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ASX:AKP CEO Compensation May 18th 2021

Audio Pixels Holdings Limited's Growth

Over the last three years, Audio Pixels Holdings Limited has shrunk its earnings per share by 30% per year. In the last year, its revenue is down 21%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet 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 Audio Pixels Holdings Limited Been A Good Investment?

With a three year total loss of 4.0% for the shareholders, Audio Pixels Holdings Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

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, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 3 which are a bit unpleasant) in Audio Pixels Holdings we think you should know about.

Switching gears from Audio Pixels Holdings, 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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