We Think Shareholders Are Less Likely To Approve A Pay Rise For Cluey Ltd's (ASX:CLU) CEO For Now

Key Insights

• Cluey's Annual General Meeting to take place on 6th of November
• CEO Trevor McDougall's total compensation includes salary of AU$317.9k
• Total compensation is similar to the industry average
• Cluey's three-year loss to shareholders was 80% while its EPS grew by 57% over the past three years

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Shareholders of Cluey Ltd (ASX:CLU) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 6th of November. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Cluey

Comparing Cluey Ltd's CEO Compensation With The Industry

According to our data, Cluey Ltd has a market capitalization of AU$27m, and paid its CEO total annual compensation worth AU$431k over the year to June 2025. This means that the compensation hasn't changed much from last year. Notably, the salary which is AU$317.9k, represents most of the total compensation being paid.

For comparison, other companies in the Australian Consumer Services industry with market capitalizations below AU$305m, reported a median total CEO compensation of AU$540k. This suggests that Cluey remunerates its CEO largely in line with the industry average. Moreover, Trevor McDougall also holds AU$250k worth of Cluey stock directly under their own name.

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. Cluey is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Cluey Ltd's Growth

Cluey Ltd's earnings per share (EPS) grew 57% per year over the last three years. In the last year, its revenue is down 15%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Cluey Ltd Been A Good Investment?

The return of -80% over three years would not have pleased Cluey Ltd shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for Cluey (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

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.