Shareholders Would Not Be Objecting To Shaver Shop Group Limited's (ASX:SSG) CEO Compensation And Here's Why

Key Insights

• Shaver Shop Group's Annual General Meeting to take place on 9th of November
• CEO Cameron Fox's total compensation includes salary of AU$591.8k
• The total compensation is similar to the average for the industry
• Shaver Shop Group's EPS grew by 15% over the past three years while total shareholder return over the past three years was 33%

The performance at Shaver Shop Group Limited (ASX:SSG) has been quite strong recently and CEO Cameron Fox has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 9th of November. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

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$136m, and reported total annual CEO compensation of AU$1.1m for the year to June 2023. That's a slight decrease of 6.2% on the prior year. In particular, the salary of AU$591.8k, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Australian Specialty Retail industry with market capitalizations below AU$315m, reported a median total CEO compensation of AU$809k. This suggests that Shaver Shop Group remunerates its CEO largely in line with the industry average. What's more, Cameron Fox holds AU$3.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	AU$592k	AU$580k	56%
Other	AU$459k	AU$540k	44%
Total Compensation	AU$1.1m	AU$1.1m	100%

On an industry level, roughly 53% of total compensation represents salary and 47% is other remuneration. Shaver Shop Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Shaver Shop Group Limited's Growth Numbers

Shaver Shop Group Limited's earnings per share (EPS) grew 15% per year over the last three years. Revenue was pretty flat on last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Shaver Shop Group Limited Been A Good Investment?

We think that the total shareholder return of 33%, over three years, would leave most Shaver Shop 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.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 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.