How Much Is Academies Australasia Group Limited (ASX:AKG) CEO Getting Paid?

Christopher Campbell has been the CEO of Academies Australasia Group Limited (ASX:AKG) since 1996, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Academies Australasia Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Academies Australasia Group

How Does Total Compensation For Christopher Campbell Compare With Other Companies In The Industry?

At the time of writing, our data shows that Academies Australasia Group Limited has a market capitalization of AU$49m, and reported total annual CEO compensation of AU$450k for the year to June 2020. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at AU$425.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$260m, we found that the median total CEO compensation was AU$503k. From this we gather that Christopher Campbell is paid around the median for CEOs in the industry. Furthermore, Christopher Campbell directly owns AU$7.3m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 72% of total compensation represents salary and 28% is other remuneration. Academies Australasia Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Academies Australasia Group Limited's Growth

Academies Australasia Group Limited has reduced its earnings per share by 8.2% a year over the last three years. In the last year, its revenue is down 9.6%.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Academies Australasia Group Limited Been A Good Investment?

With a total shareholder return of 4.6% over three years, Academies Australasia Group Limited has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As we noted earlier, Academies Australasia Group pays its CEO in line with similar-sized companies belonging to the same industry. According to our analysis, Academies Australasia Group is suffering from uninspiring EPS growth, and even though shareholder returns are stable, they are hardly impressive. This doesn't compare well with CEO compensation, which is largely in line with the industry median. We wouldn't go as far as saying CEO compensation is inappropriate, but we don't think the executive is underpaid.

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 you should be aware of before investing.

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. 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.
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