Stock Analysis

Here's Why Shareholders Will Not Be Complaining About Shaver Shop Group Limited's (ASX:SSG) CEO Pay Packet

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ASX:SSG
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The performance at Shaver Shop Group Limited (ASX:SSG) has been quite strong recently and CEO Cameron Fox has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 10 November 2021. 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.

See our latest analysis for Shaver Shop Group

Comparing Shaver Shop Group Limited's CEO Compensation With the industry

Our data indicates that Shaver Shop Group Limited has a market capitalization of AU$131m, and total annual CEO compensation was reported as AU$1.0m for the year to June 2021. We note that's an increase of 23% above last year. In particular, the salary of AU$550.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under AU$269m, the reported median total CEO compensation was AU$1.1m. From this we gather that Cameron Fox is paid around the median for CEOs in the industry. Furthermore, Cameron Fox directly owns AU$4.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20212020Proportion (2021)
Salary AU$550k AU$500k 54%
Other AU$460k AU$322k 46%
Total CompensationAU$1.0m AU$822k100%

Speaking on an industry level, nearly 38% of total compensation represents salary, while the remainder of 62% is other remuneration. Shaver Shop Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
ASX:SSG CEO Compensation November 3rd 2021

A Look at Shaver Shop Group Limited's Growth Numbers

Shaver Shop Group Limited has seen its earnings per share (EPS) increase by 37% a year over the past three years. Its revenue is up 9.6% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Shaver Shop Group Limited Been A Good Investment?

We think that the total shareholder return of 206%, over three years, would leave most Shaver Shop Group Limited 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...

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. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Shaver Shop Group that investors should look into moving forward.

Switching gears from Shaver Shop Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Valuation is complex, but we're helping make it simple.

Find out whether Shaver Shop Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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