Key Insights
- AGL Energy to hold its Annual General Meeting on 3rd of October
- CEO Damien Nicks' total compensation includes salary of AU$1.45m
- Total compensation is 43% above industry average
- AGL Energy's EPS grew by 31% over the past three years while total shareholder return over the past three years was 53%
Performance at AGL Energy Limited (ASX:AGL) has been reasonably good and CEO Damien Nicks has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 3rd of October. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for AGL Energy
Comparing AGL Energy Limited's CEO Compensation With The Industry
Our data indicates that AGL Energy Limited has a market capitalization of AU$5.9b, and total annual CEO compensation was reported as AU$3.5m for the year to June 2025. That's just a smallish increase of 6.5% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$1.5m.
On comparing similar companies from the Australia Integrated Utilities industry with market caps ranging from AU$3.0b to AU$9.7b, we found that the median CEO total compensation was AU$2.4m. Hence, we can conclude that Damien Nicks is remunerated higher than the industry median. Furthermore, Damien Nicks directly owns AU$2.9m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | AU$1.5m | AU$1.4m | 42% |
| Other | AU$2.0m | AU$1.9m | 58% |
| Total Compensation | AU$3.5m | AU$3.3m | 100% |
Speaking on an industry level, nearly 24% of total compensation represents salary, while the remainder of 76% is other remuneration. AGL Energy pays out 42% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
AGL Energy Limited's Growth
AGL Energy Limited's earnings per share (EPS) grew 31% per year over the last three years. It achieved revenue growth of 6.0% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 AGL Energy Limited Been A Good Investment?
Boasting a total shareholder return of 53% over three years, AGL Energy Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in AGL Energy we think you should know about.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
Valuation is complex, but we're here to simplify it.
Discover if AGL Energy might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.