Charter Hall Group's (ASX:CHC) CEO Compensation Is Looking A Bit Stretched At The Moment

Under the guidance of CEO David Harrison, Charter Hall Group (ASX:CHC) has performed reasonably well recently. As shareholders go into the upcoming AGM on 11 November 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Charter Hall Group

Comparing Charter Hall Group's CEO Compensation With the industry

At the time of writing, our data shows that Charter Hall Group has a market capitalization of AU$9.0b, and reported total annual CEO compensation of AU$5.4m for the year to June 2021. That's a notable increase of 13% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$1.5m.

In comparison with other companies in the industry with market capitalizations ranging from AU$5.4b to AU$16b, the reported median CEO total compensation was AU$2.8m. This suggests that David Harrison is paid more than the median for the industry. What's more, David Harrison holds AU$28m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2021	2020	Proportion (2021)
Salary	AU$1.5m	AU$1.5m	27%
Other	AU$4.0m	AU$3.3m	73%
Total Compensation	AU$5.4m	AU$4.8m	100%

On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. It's interesting to note that Charter Hall Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Charter Hall Group's Growth

Charter Hall Group's earnings per share (EPS) grew 25% per year over the last three years. Its revenue is up 38% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Charter Hall Group Been A Good Investment?

We think that the total shareholder return of 200%, over three years, would leave most Charter Hall Group shareholders smiling. 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.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Charter Hall Group that you should be aware of before investing.

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.

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.

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