Shareholders Will Most Likely Find Shaver Shop Group Limited's (ASX:SSG) CEO Compensation Acceptable

Key Insights

• Shaver Shop Group to hold its Annual General Meeting on 14th of November
• Salary of AU$607.1k is part of CEO Cameron Fox's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Shaver Shop Group's EPS fell by 6.6% and over the past three years, the total shareholder return was 62%

The share price of Shaver Shop Group Limited (ASX:SSG) has increased significantly over the past few years. However, the earnings growth has not kept up with the share price momentum, suggesting that some other factors may be driving the price direction. Some of these issues will occupy shareholders' minds as the AGM rolls around on 14th of November. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

View our latest analysis for Shaver Shop Group

How Does Total Compensation For Cameron Fox Compare With Other Companies In The Industry?

At the time of writing, our data shows that Shaver Shop Group Limited has a market capitalization of AU$174m, and reported total annual CEO compensation of AU$984k for the year to June 2024. That's a slight decrease of 6.4% on the prior year. Notably, the salary which is AU$607.1k, represents most of the total compensation being paid.

In comparison with other companies in the Australian Specialty Retail industry with market capitalizations under AU$305m, the reported median total CEO compensation was AU$984k. So it looks like Shaver Shop Group compensates Cameron Fox in line with the median for the industry. Moreover, Cameron Fox also holds AU$4.8m worth of Shaver Shop Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	AU$607k	AU$592k	62%
Other	AU$377k	AU$459k	38%
Total Compensation	AU$984k	AU$1.1m	100%

On an industry level, roughly 55% of total compensation represents salary and 45% is other remuneration. Shaver Shop Group pays out 62% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Shaver Shop Group Limited's Growth

Over the last three years, Shaver Shop Group Limited has shrunk its earnings per share by 6.6% per year. Its revenue is down 2.3% over the previous year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Shaver Shop Group Limited Been A Good Investment?

Most shareholders would probably be pleased with Shaver Shop Group Limited for providing a total return of 62% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Shaver Shop Group that you should be aware of before investing.

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.

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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.