We Think Shaver Shop Group Limited's (ASX:SSG) CEO Compensation Looks Fair

It would be hard to discount the role that CEO Cameron Fox has played in delivering the impressive results at Shaver Shop Group Limited (ASX:SSG) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 10 November 2022. 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?

Our data indicates that Shaver Shop Group Limited has a market capitalization of AU$142m, and total annual CEO compensation was reported as AU$1.1m for the year to June 2022. Notably, that's an increase of 11% over the year before. We note that the salary of AU$580.0k makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under AU$313m, the reported median total CEO compensation was AU$894k. From this we gather that Cameron Fox is paid around the median for CEOs in the industry. What's more, Cameron Fox holds AU$5.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	AU$580k	AU$550k	52%
Other	AU$540k	AU$460k	48%
Total Compensation	AU$1.1m	AU$1.0m	100%

Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. Our data reveals that Shaver Shop Group allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Shaver Shop Group Limited's Growth

Over the past three years, Shaver Shop Group Limited has seen its earnings per share (EPS) grow by 33% per year. Its revenue is up 4.2% 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 106%, 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.

CEO compensation can have a massive impact on performance, but it's just one element. 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.