Credit Corp Group Limited's (ASX:CCP) CEO Compensation Is Looking A Bit Stretched At The Moment
Key Insights
Credit Corp Group's Annual General Meeting to take place on 23rd of October
Salary of AU$674.7k is part of CEO Thomas Beregi's total remuneration
The overall pay is 53% above the industry average
Credit Corp Group's EPS grew by 74% over the past three years while total shareholder loss over the past three years was 36%
In the past three years, the share price of Credit Corp Group Limited (ASX:CCP) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 23rd of October could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
View our latest analysis for Credit Corp Group
How Does Total Compensation For Thomas Beregi Compare With Other Companies In The Industry?
According to our data, Credit Corp Group Limited has a market capitalization of AU$815m, and paid its CEO total annual compensation worth AU$1.8m over the year to June 2023. That's a notable decrease of 38% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$675k.
On examining similar-sized companies in the Australian Consumer Finance industry with market capitalizations between AU$314m and AU$1.3b, we discovered that the median CEO total compensation of that group was AU$1.2m. Accordingly, our analysis reveals that Credit Corp Group Limited pays Thomas Beregi north of the industry median. Furthermore, Thomas Beregi directly owns AU$492k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$675k | AU$676k | 38% |
Other | AU$1.1m | AU$2.2m | 62% |
Total Compensation | AU$1.8m | AU$2.9m | 100% |
On an industry level, roughly 55% of total compensation represents salary and 45% is other remuneration. In Credit Corp Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Credit Corp Group Limited's Growth Numbers
Credit Corp Group Limited has seen its earnings per share (EPS) increase by 74% a year over the past three years. Its revenue is up 5.7% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Credit Corp Group Limited Been A Good Investment?
Few Credit Corp Group Limited shareholders would feel satisfied with the return of -36% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
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 1 warning sign for Credit Corp Group that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
