Increases to CEO Compensation Might Be Put On Hold For Now at Ridley Corporation Limited (ASX:RIC)

Key Insights

• Ridley will host its Annual General Meeting on 19th of November
• Salary of AU$745.0k is part of CEO Quinton Hildebrand's total remuneration
• The overall pay is 40% above the industry average
• Over the past three years, Ridley's EPS grew by 17% and over the past three years, the total shareholder return was 131%

CEO Quinton Hildebrand has done a decent job of delivering relatively good performance at Ridley Corporation Limited (ASX:RIC) recently. As shareholders go into the upcoming AGM on 19th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Ridley

Comparing Ridley Corporation Limited's CEO Compensation With The Industry

Our data indicates that Ridley Corporation Limited has a market capitalization of AU$869m, and total annual CEO compensation was reported as AU$2.9m for the year to June 2024. We note that's an increase of 44% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$745k.

In comparison with other companies in the Australian Food industry with market capitalizations ranging from AU$306m to AU$1.2b, the reported median CEO total compensation was AU$2.1m. Accordingly, our analysis reveals that Ridley Corporation Limited pays Quinton Hildebrand north of the industry median. Moreover, Quinton Hildebrand also holds AU$10m worth of Ridley stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	AU$745k	AU$723k	25%
Other	AU$2.2m	AU$1.3m	75%
Total Compensation	AU$2.9m	AU$2.0m	100%

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. Ridley pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Ridley Corporation Limited's Growth Numbers

Ridley Corporation Limited has seen its earnings per share (EPS) increase by 17% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Ridley Corporation Limited Been A Good Investment?

Most shareholders would probably be pleased with Ridley Corporation Limited for providing a total return of 131% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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.

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 Ridley that investors should look into moving forward.

Important note: Ridley is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.