Shareholders Will Probably Hold Off On Increasing Charter Hall Group's (ASX:CHC) CEO Compensation For The Time Being

Under the guidance of CEO David Harrison, Charter Hall Group (ASX:CHC) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16 November 2022. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Charter Hall Group

How Does Total Compensation For David Harrison Compare With Other Companies In The Industry?

At the time of writing, our data shows that Charter Hall Group has a market capitalization of AU$6.2b, and reported total annual CEO compensation of AU$8.5m for the year to June 2022. We note that's an increase of 56% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$1.5m.

On comparing similar companies from the same industry with market caps ranging from AU$3.1b to AU$9.8b, we found that the median CEO total compensation was AU$4.6m. Accordingly, our analysis reveals that Charter Hall Group pays David Harrison north of the industry median. Moreover, David Harrison also holds AU$15m worth of Charter Hall Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	AU$1.5m	AU$1.5m	17%
Other	AU$7.0m	AU$4.0m	83%
Total Compensation	AU$8.5m	AU$5.4m	100%

On an industry level, around 40% of total compensation represents salary and 60% 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.

A Look at Charter Hall Group's Growth Numbers

Charter Hall Group has seen its earnings per share (EPS) increase by 56% a year over the past three years. In the last year, its revenue is up 65%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Charter Hall Group Been A Good Investment?

We think that the total shareholder return of 34%, over three years, would leave most Charter Hall Group shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 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.

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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.