Here's Why Shareholders Will Not Be Complaining About Joyce Corporation Ltd's (ASX:JYC) CEO Pay Packet

Key Insights

• Joyce will host its Annual General Meeting on 24th of November
• Salary of AU$436.7k is part of CEO Dan Madden's total remuneration
• The overall pay is comparable to the industry average
• Joyce's EPS grew by 48% over the past three years while total shareholder return over the past three years was 133%

It would be hard to discount the role that CEO Dan Madden has played in delivering the impressive results at Joyce Corporation Ltd (ASX:JYC) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 24th 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. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Joyce

How Does Total Compensation For Dan Madden Compare With Other Companies In The Industry?

According to our data, Joyce Corporation Ltd has a market capitalization of AU$85m, and paid its CEO total annual compensation worth AU$881k over the year to June 2023. Notably, that's an increase of 32% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$437k.

For comparison, other companies in the Australian Specialty Retail industry with market capitalizations below AU$308m, reported a median total CEO compensation of AU$810k. From this we gather that Dan Madden is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	AU$437k	AU$384k	50%
Other	AU$444k	AU$285k	50%
Total Compensation	AU$881k	AU$669k	100%

Talking in terms of the industry, salary represented approximately 53% of total compensation out of all the companies we analyzed, while other remuneration made up 47% of the pie. There isn't a significant difference between Joyce and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Joyce Corporation Ltd's Growth

Joyce Corporation Ltd has seen its earnings per share (EPS) increase by 48% a year over the past three years. In the last year, its revenue is up 12%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Joyce Corporation Ltd Been A Good Investment?

Most shareholders would probably be pleased with Joyce Corporation Ltd for providing a total return of 133% over three years. 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...

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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Joyce that investors should be aware of in a dynamic business environment.

Important note: Joyce 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.