We Take A Look At Why Autosports Group Limited's (ASX:ASG) CEO Has Earned Their Pay Packet

It would be hard to discount the role that CEO Nick Pagent has played in delivering the impressive results at Autosports Group Limited (ASX:ASG) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 25 November 2022. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out the opportunities and risks within the AU Specialty Retail industry.

How Does Total Compensation For Nick Pagent Compare With Other Companies In The Industry?

According to our data, Autosports Group Limited has a market capitalization of AU$413m, and paid its CEO total annual compensation worth AU$1.6m over the year to June 2022. Notably, that's an increase of 14% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$594k.

On examining similar-sized companies in the industry with market capitalizations between AU$150m and AU$601m, we discovered that the median CEO total compensation of that group was AU$1.3m. This suggests that Autosports Group remunerates its CEO largely in line with the industry average. Furthermore, Nick Pagent directly owns AU$427k worth of shares in the company.

Component	2022	2021	Proportion (2022)
Salary	AU$594k	AU$538k	36%
Other	AU$1.0m	AU$909k	64%
Total Compensation	AU$1.6m	AU$1.4m	100%

Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. Autosports Group 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.

Autosports Group Limited's Growth

Autosports Group Limited has seen its earnings per share (EPS) increase by 68% a year over the past three years. In the last year, its revenue is down 5.2%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Autosports Group Limited Been A Good Investment?

Boasting a total shareholder return of 41% over three years, Autosports Group Limited has done well by shareholders. 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 solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Autosports Group (1 is potentially serious!) that you should be aware of before investing here.

Important note: Autosports 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.