We Discuss Why Audioboom Group plc's (LON:BOOM) CEO Compensation May Be Closely Reviewed

Key Insights

• Audioboom Group to hold its Annual General Meeting on 24th of July
• Total pay for CEO Stuart Last includes US$292.0k salary
• The total compensation is similar to the average for the industry
• Audioboom Group's three-year loss to shareholders was 73% while its EPS was down 76% over the past three years

Audioboom Group plc (LON:BOOM) has not performed well recently and CEO Stuart Last will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 24th of July. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Audioboom Group

Comparing Audioboom Group plc's CEO Compensation With The Industry

Our data indicates that Audioboom Group plc has a market capitalization of UK£41m, and total annual CEO compensation was reported as US$335k for the year to December 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of US$292.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the British Interactive Media and Services industry with market capitalizations below UK£154m, we found that the median total CEO compensation was US$335k. So it looks like Audioboom Group compensates Stuart Last in line with the median for the industry. Moreover, Stuart Last also holds UK£103k worth of Audioboom Group stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	US$292k	US$270k	87%
Other	US$43k	US$66k	13%
Total Compensation	US$335k	US$336k	100%

On an industry level, roughly 33% of total compensation represents salary and 67% is other remuneration. According to our research, Audioboom Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Audioboom Group plc's Growth

Over the last three years, Audioboom Group plc has shrunk its earnings per share by 76% per year. Its revenue is down 13% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Audioboom Group plc Been A Good Investment?

The return of -73% over three years would not have pleased Audioboom Group plc shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 4 warning signs for Audioboom Group that you should be aware of before investing.

Important note: Audioboom Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com