Shareholders May Be Wary Of Increasing Alliance Entertainment Holding Corporation's (NASDAQ:AENT) CEO Compensation Package

Key Insights

• Alliance Entertainment Holding will host its Annual General Meeting on 6th of November
• Salary of US$640.0k is part of CEO Jeff Walker's total remuneration
• The overall pay is 121% above the industry average
• Alliance Entertainment Holding's EPS declined by 21% over the past three years while total shareholder loss over the past three years was 39%

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The results at Alliance Entertainment Holding Corporation (NASDAQ:AENT) have been quite disappointing recently and CEO Jeff Walker bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 6th of November. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Alliance Entertainment Holding

How Does Total Compensation For Jeff Walker Compare With Other Companies In The Industry?

Our data indicates that Alliance Entertainment Holding Corporation has a market capitalization of US$313m, and total annual CEO compensation was reported as US$1.3m for the year to June 2025. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$640k.

For comparison, other companies in the American Retail Distributors industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$595k. Accordingly, our analysis reveals that Alliance Entertainment Holding Corporation pays Jeff Walker north of the industry median. Furthermore, Jeff Walker directly owns US$143m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2025	2024	Proportion (2025)
Salary	US$640k	US$640k	49%
Other	US$675k	US$679k	51%
Total Compensation	US$1.3m	US$1.3m	100%

On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. Our data reveals that Alliance Entertainment Holding allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Alliance Entertainment Holding Corporation's Growth

Over the last three years, Alliance Entertainment Holding Corporation has shrunk its earnings per share by 21% per year. In the last year, its revenue is down 3.4%.

Few shareholders would be pleased to read that EPS have declined. 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. 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 Alliance Entertainment Holding Corporation Been A Good Investment?

Few Alliance Entertainment Holding Corporation shareholders would feel satisfied with the return of -39% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for Alliance Entertainment Holding you should be aware of, and 1 of them makes us a bit uncomfortable.

Important note: Alliance Entertainment Holding 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.