Here's Why Ainsworth Game Technology Limited's (ASX:AGI) CEO Is Unlikely to Expect A Pay Rise This Year

Key Insights

• Ainsworth Game Technology will host its Annual General Meeting on 29th of May
• Total pay for CEO Harald Michael Neumann includes AU$902.5k salary
• The total compensation is similar to the average for the industry
• Over the past three years, Ainsworth Game Technology's EPS grew by 108% and over the past three years, the total shareholder return was 0.6%

Performance at Ainsworth Game Technology Limited (ASX:AGI) has been reasonably good and CEO Harald Michael Neumann has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 29th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for Ainsworth Game Technology

Comparing Ainsworth Game Technology Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Ainsworth Game Technology Limited has a market capitalization of AU$301m, and reported total annual CEO compensation of AU$1.6m for the year to December 2023. We note that's an increase of 42% above last year. In particular, the salary of AU$902.5k, makes up a fairly large portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Australian Hospitality industry with market capitalizations between AU$150m and AU$600m, we discovered that the median CEO total compensation of that group was AU$1.5m. From this we gather that Harald Michael Neumann is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	AU$903k	AU$447k	57%
Other	AU$686k	AU$674k	43%
Total Compensation	AU$1.6m	AU$1.1m	100%

Talking in terms of the industry, salary represented approximately 55% of total compensation out of all the companies we analyzed, while other remuneration made up 45% of the pie. Ainsworth Game Technology is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Ainsworth Game Technology Limited's Growth Numbers

Ainsworth Game Technology Limited has seen its earnings per share (EPS) increase by 108% a year over the past three years. Its revenue is up 15% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Ainsworth Game Technology Limited Been A Good Investment?

With a total shareholder return of 0.6% over three years, Ainsworth Game Technology Limited has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ainsworth Game Technology.

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.