Here's Why Some Shareholders May Not Be Too Generous With New Hope Corporation Limited's (ASX:NHC) CEO Compensation This Year

Key Insights

• New Hope will host its Annual General Meeting on 20th of November
• CEO Rob Bishop's total compensation includes salary of AU$1.34m
• The overall pay is comparable to the industry average
• New Hope's EPS declined by 24% over the past three years while total shareholder return over the past three years was 3.6%

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Share price growth at New Hope Corporation Limited (ASX:NHC) has remained rather flat over the last few years and it may be because earnings has struggled to grow at all. The upcoming AGM on 20th of November may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

Check out our latest analysis for New Hope

Comparing New Hope Corporation Limited's CEO Compensation With The Industry

At the time of writing, our data shows that New Hope Corporation Limited has a market capitalization of AU$3.7b, and reported total annual CEO compensation of AU$4.1m for the year to July 2025. We note that's an increase of 17% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$1.3m.

On examining similar-sized companies in the Australian Oil and Gas 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$3.7m. From this we gather that Rob Bishop is paid around the median for CEOs in the industry. Moreover, Rob Bishop also holds AU$2.1m worth of New Hope stock directly under their own name.

Talking in terms of the industry, salary represented approximately 58% of total compensation out of all the companies we analyzed, while other remuneration made up 42% of the pie. New Hope pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

New Hope Corporation Limited's Growth

New Hope Corporation Limited has reduced its earnings per share by 24% a year over the last three years. In the last year, its revenue changed by just 0.3%.

Overall this is not a very positive result for shareholders. And the flat revenue is seriously uninspiring. 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 New Hope Corporation Limited Been A Good Investment?

With a total shareholder return of 3.6% over three years, New Hope Corporation Limited has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

The lacklustre share price returns along with the lack of earnings growth makes us think that a strong rebound in the share price may be difficult. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for New Hope that investors should look into moving forward.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.