Ampol Limited's (ASX:ALD) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Ampol's Annual General Meeting to take place on 15th of May
• Salary of AU$1.90m is part of CEO Matt Halliday's total remuneration
• The total compensation is similar to the average for the industry
• Ampol's EPS declined by 38% over the past three years while total shareholder loss over the past three years was 5.9%

Our free stock report includes 2 warning signs investors should be aware of before investing in Ampol. Read for free now.

The results at Ampol Limited (ASX:ALD) have been quite disappointing recently and CEO Matt Halliday bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 15th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Ampol

How Does Total Compensation For Matt Halliday Compare With Other Companies In The Industry?

At the time of writing, our data shows that Ampol Limited has a market capitalization of AU$6.1b, and reported total annual CEO compensation of AU$4.1m for the year to December 2024. That's a notable decrease of 32% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$1.9m.

In comparison with other companies in the Australian Oil and Gas industry with market capitalizations ranging from AU$3.1b to AU$9.9b, the reported median CEO total compensation was AU$5.2m. This suggests that Ampol remunerates its CEO largely in line with the industry average. What's more, Matt Halliday holds AU$7.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	AU$1.9m	AU$1.9m	47%
Other	AU$2.2m	AU$4.1m	53%
Total Compensation	AU$4.1m	AU$5.9m	100%

On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. It's interesting to note that Ampol allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Ampol Limited's Growth

Over the last three years, Ampol Limited has shrunk its earnings per share by 38% per year. Its revenue is down 7.6% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Ampol Limited Been A Good Investment?

Since shareholders would have lost about 5.9% over three years, some Ampol Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which is potentially serious) in Ampol we think you should know about.

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.