Shareholders May Be More Conservative With Accent Group Limited's (ASX:AX1) CEO Compensation For Now

Key Insights

• Accent Group to hold its Annual General Meeting on 16th of November
• Total pay for CEO Daniel Agostinelli includes AU$1.28m salary
• Total compensation is 46% above industry average
• Accent Group's total shareholder return over the past three years was 42% while its EPS grew by 15% over the past three years

CEO Daniel Agostinelli has done a decent job of delivering relatively good performance at Accent Group Limited (ASX:AX1) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 16th of November. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Accent Group

How Does Total Compensation For Daniel Agostinelli Compare With Other Companies In The Industry?

At the time of writing, our data shows that Accent Group Limited has a market capitalization of AU$1.1b, and reported total annual CEO compensation of AU$3.8m for the year to July 2023. Notably, that's an increase of 37% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$1.3m.

On examining similar-sized companies in the Australian Specialty Retail industry with market capitalizations between AU$625m and AU$2.5b, we discovered that the median CEO total compensation of that group was AU$2.6m. Hence, we can conclude that Daniel Agostinelli is remunerated higher than the industry median. Moreover, Daniel Agostinelli also holds AU$36m worth of Accent Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	AU$1.3m	AU$1.4m	34%
Other	AU$2.5m	AU$1.4m	66%
Total Compensation	AU$3.8m	AU$2.8m	100%

On an industry level, around 53% of total compensation represents salary and 47% is other remuneration. In Accent Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

Accent Group Limited's Growth

Accent Group Limited has seen its earnings per share (EPS) increase by 15% a year over the past three years. It achieved revenue growth of 25% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Accent Group Limited Been A Good Investment?

We think that the total shareholder return of 42%, over three years, would leave most Accent Group Limited 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.

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, 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 is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Accent Group 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.

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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.