Here's Why It's Unlikely That Academies Australasia Group Limited's (ASX:AKG) CEO Will See A Pay Rise This Year

Key Insights

• Academies Australasia Group's Annual General Meeting to take place on 22nd of November
• Total pay for CEO Christopher Campbell includes AU$512.0k salary
• The total compensation is similar to the average for the industry
• Over the past three years, Academies Australasia Group's EPS fell by 71% and over the past three years, the total loss to shareholders 57%

The results at Academies Australasia Group Limited (ASX:AKG) have been quite disappointing recently and CEO Christopher Campbell bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 22nd 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. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Academies Australasia Group

Comparing Academies Australasia Group Limited's CEO Compensation With The Industry

According to our data, Academies Australasia Group Limited has a market capitalization of AU$15m, and paid its CEO total annual compensation worth AU$540k over the year to June 2024. This was the same amount the CEO received in the prior year. In particular, the salary of AU$512.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Australian Consumer Services industry with market capitalizations below AU$310m, reported a median total CEO compensation of AU$516k. This suggests that Academies Australasia Group remunerates its CEO largely in line with the industry average. Furthermore, Christopher Campbell directly owns AU$2.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	AU$512k	AU$512k	95%
Other	AU$28k	AU$28k	5%
Total Compensation	AU$540k	AU$540k	100%

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. According to our research, Academies Australasia Group has allocated a higher percentage of pay to salary in comparison to the wider industry. 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.

Academies Australasia Group Limited's Growth

Academies Australasia Group Limited has reduced its earnings per share by 71% a year over the last three years. Revenue was pretty flat on last year.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Academies Australasia Group Limited Been A Good Investment?

The return of -57% over three years would not have pleased Academies Australasia Group Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Academies Australasia Group that investors should think about before committing capital to this stock.

Important note: Academies Australasia Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.