Shareholders May Be More Conservative With Elanor Investors Group's (ASX:ENN) CEO Compensation For Now

Key Insights

• Elanor Investors Group's Annual General Meeting to take place on 24th of October
• CEO Glenn Willis' total compensation includes salary of AU$742.1k
• The overall pay is 132% above the industry average
• Elanor Investors Group's total shareholder return over the past three years was 20% while its EPS was down 45% over the past three years

Under the guidance of CEO Glenn Willis, Elanor Investors Group (ASX:ENN) has performed reasonably well recently. As shareholders go into the upcoming AGM on 24th of October, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Elanor Investors Group

Comparing Elanor Investors Group's CEO Compensation With The Industry

At the time of writing, our data shows that Elanor Investors Group has a market capitalization of AU$195m, and reported total annual CEO compensation of AU$1.6m for the year to June 2023. That's a notable decrease of 13% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$742k.

On comparing similar-sized companies in the Australian Hospitality industry with market capitalizations below AU$314m, we found that the median total CEO compensation was AU$682k. Hence, we can conclude that Glenn Willis is remunerated higher than the industry median. Furthermore, Glenn Willis directly owns AU$7.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	AU$742k	AU$671k	47%
Other	AU$840k	AU$1.1m	53%
Total Compensation	AU$1.6m	AU$1.8m	100%

On an industry level, around 57% of total compensation represents salary and 43% is other remuneration. Elanor Investors Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Elanor Investors Group's Growth

Elanor Investors Group has reduced its earnings per share by 45% a year over the last three years. It achieved revenue growth of 31% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Elanor Investors Group Been A Good Investment?

Elanor Investors Group has served shareholders reasonably well, with a total return of 20% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

The overall company performance has been commendable, however there are still areas for improvement. Until EPS growth picks back up, we think shareholders may find it hard to justify increasing CEO pay given that they are already paid above industry average.

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 3 warning signs for Elanor Investors Group (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Important note: Elanor Investors 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.

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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.