Shareholders May Be Wary Of Increasing IDP Education Limited's (ASX:IEL) CEO Compensation Package

Key Insights

• IDP Education's Annual General Meeting to take place on 21st of October
• Total pay for CEO Tennealle O’Shannessy includes AU$1.37m salary
• Total compensation is 97% above industry average
• Over the past three years, IDP Education's EPS fell by 24% and over the past three years, the total loss to shareholders 76%

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IDP Education Limited (ASX:IEL) has not performed well recently and CEO Tennealle O’Shannessy will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 21st of October. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for IDP Education

Comparing IDP Education Limited's CEO Compensation With The Industry

At the time of writing, our data shows that IDP Education Limited has a market capitalization of AU$1.8b, and reported total annual CEO compensation of AU$2.5m for the year to June 2025. That's a notable increase of 18% on last year. We note that the salary of AU$1.37m makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Australian Consumer Services industry with market capitalizations ranging between AU$613m and AU$2.5b had a median total CEO compensation of AU$1.3m. Accordingly, our analysis reveals that IDP Education Limited pays Tennealle O’Shannessy north of the industry median. Furthermore, Tennealle O’Shannessy directly owns AU$573k worth of shares in the company.

Component	2025	2024	Proportion (2025)
Salary	AU$1.4m	AU$1.1m	55%
Other	AU$1.1m	AU$979k	45%
Total Compensation	AU$2.5m	AU$2.1m	100%

On an industry level, roughly 55% of total compensation represents salary and 45% is other remuneration. There isn't a significant difference between IDP Education and the broader market, in terms of salary allocation in the overall compensation package. 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 IDP Education Limited's Growth Numbers

Over the last three years, IDP Education Limited has shrunk its earnings per share by 24% per year. It saw its revenue drop 15% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 IDP Education Limited Been A Good Investment?

With a total shareholder return of -76% over three years, IDP Education Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for IDP Education that investors should look into moving forward.

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.