We Think Some Shareholders May Hesitate To Increase HUB24 Limited's (ASX:HUB) CEO Compensation

CEO Andrew Alcock has done a decent job of delivering relatively good performance at HUB24 Limited (ASX:HUB) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16 November 2022. However, some shareholders will still be cautious of paying the CEO excessively.

Check out the opportunities and risks within the AU Capital Markets industry.

How Does Total Compensation For Andrew Alcock Compare With Other Companies In The Industry?

Our data indicates that HUB24 Limited has a market capitalization of AU$2.0b, and total annual CEO compensation was reported as AU$3.5m for the year to June 2022. That's a notable increase of 92% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$622k.

On examining similar-sized companies in the industry with market capitalizations between AU$1.5b and AU$4.9b, we discovered that the median CEO total compensation of that group was AU$2.3m. This suggests that Andrew Alcock is paid more than the median for the industry. What's more, Andrew Alcock holds AU$26m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	AU$622k	AU$506k	18%
Other	AU$2.9m	AU$1.3m	82%
Total Compensation	AU$3.5m	AU$1.8m	100%

On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. HUB24 sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

HUB24 Limited's Growth

Over the past three years, HUB24 Limited has seen its earnings per share (EPS) grow by 17% per year. In the last year, its revenue is up 76%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has HUB24 Limited Been A Good Investment?

We think that the total shareholder return of 104%, over three years, would leave most HUB24 Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for HUB24 that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.