IVE Group Limited's (ASX:IGL) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• IVE Group's Annual General Meeting to take place on 19th of November
• CEO Matt Aitken's total compensation includes salary of AU$674.7k
• Total compensation is similar to the industry average
• IVE Group's total shareholder return over the past three years was 135% while its EPS grew by 64% over the past three years

We have been pretty impressed with the performance at IVE Group Limited (ASX:IGL) recently and CEO Matt Aitken deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 19th of November. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for IVE Group

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

At the time of writing, our data shows that IVE Group Limited has a market capitalization of AU$297m, and reported total annual CEO compensation of AU$1.3m for the year to June 2023. That's a notable increase of 28% on last year. In particular, the salary of AU$674.7k, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the Australian Media industry with market capitalizations ranging from AU$157m to AU$628m, the reported median CEO total compensation was AU$1.3m. From this we gather that Matt Aitken is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	AU$675k	AU$617k	52%
Other	AU$622k	AU$397k	48%
Total Compensation	AU$1.3m	AU$1.0m	100%

On an industry level, around 57% of total compensation represents salary and 43% is other remuneration. IVE Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at IVE Group Limited's Growth Numbers

IVE Group Limited's earnings per share (EPS) grew 64% per year over the last three years. It achieved revenue growth of 28% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 IVE Group Limited Been A Good Investment?

Most shareholders would probably be pleased with IVE Group Limited for providing a total return of 135% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for IVE Group you should be aware of, and 2 of them make us uncomfortable.

Important note: IVE Group 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.

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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.