Most Shareholders Will Probably Agree With EVE Health Group Limited's (ASX:EVE) CEO Compensation

Key Insights

• EVE Health Group to hold its Annual General Meeting on 23rd of November
• CEO Bill Fry's total compensation includes salary of AU$191.1k
• Total compensation is 49% below industry average
• EVE Health Group's three-year loss to shareholders was 87% while its EPS was down 6.0% over the past three years

Shareholders may be wondering what CEO Bill Fry plans to do to improve the less than great performance at EVE Health Group Limited (ASX:EVE) recently. At the next AGM coming up on 23rd of November, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

See our latest analysis for EVE Health Group

Comparing EVE Health Group Limited's CEO Compensation With The Industry

Our data indicates that EVE Health Group Limited has a market capitalization of AU$5.3m, and total annual CEO compensation was reported as AU$217k for the year to June 2023. Notably, that's a decrease of 41% over the year before. In particular, the salary of AU$191.1k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Australian Food industry with market capitalizations under AU$309m, the reported median total CEO compensation was AU$425k. That is to say, Bill Fry is paid under the industry median.

Component	2023	2022	Proportion (2023)
Salary	AU$191k	AU$302k	88%
Other	AU$25k	AU$62k	12%
Total Compensation	AU$217k	AU$365k	100%

Talking in terms of the industry, salary represented approximately 72% of total compensation out of all the companies we analyzed, while other remuneration made up 28% of the pie. EVE Health Group pays out 88% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

EVE Health Group Limited's Growth

EVE Health Group Limited has reduced its earnings per share by 6.0% a year over the last three years. It achieved revenue growth of 16% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has EVE Health Group Limited Been A Good Investment?

With a total shareholder return of -87% over three years, EVE Health Group Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders are sitting on a loss is certainly disheartening. The downward trend in share price performance may be attributable to the the fact that earnings growth has gone backwards. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

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. That's why we did our research, and identified 5 warning signs for EVE Health Group (of which 4 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from EVE Health Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.