Shareholders Will Probably Hold Off On Increasing Treasury Wine Estates Limited's (ASX:TWE) CEO Compensation For The Time Being

Key Insights

• Treasury Wine Estates' Annual General Meeting to take place on 16th of October
• Total pay for CEO Tim Ford includes AU$1.68m salary
• The overall pay is 224% above the industry average
• Treasury Wine Estates' EPS grew by 14% over the past three years while total shareholder loss over the past three years was 40%

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

Shareholders of Treasury Wine Estates Limited (ASX:TWE) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 16th of October. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Treasury Wine Estates

How Does Total Compensation For Tim Ford Compare With Other Companies In The Industry?

According to our data, Treasury Wine Estates Limited has a market capitalization of AU$5.5b, and paid its CEO total annual compensation worth AU$4.3m over the year to June 2025. That's a notable increase of 9.4% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$1.7m.

On comparing similar companies from the Australia Beverage industry with market caps ranging from AU$3.0b to AU$9.7b, we found that the median CEO total compensation was AU$1.3m. Accordingly, our analysis reveals that Treasury Wine Estates Limited pays Tim Ford north of the industry median. Moreover, Tim Ford also holds AU$4.2m worth of Treasury Wine Estates stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2025	2024	Proportion (2025)
Salary	AU$1.7m	AU$1.6m	39%
Other	AU$2.6m	AU$2.3m	61%
Total Compensation	AU$4.3m	AU$3.9m	100%

Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. Treasury Wine Estates 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.

Treasury Wine Estates Limited's Growth

Over the past three years, Treasury Wine Estates Limited has seen its earnings per share (EPS) grow by 14% per year. In the last year, its revenue is up 6.5%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Treasury Wine Estates Limited Been A Good Investment?

With a total shareholder return of -40% over three years, Treasury Wine Estates Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

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 1 warning sign for Treasury Wine Estates that investors should think about before committing capital to this stock.

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.