It Looks Like Quickstep Holdings Limited's (ASX:QHL) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
Quickstep Holdings to hold its Annual General Meeting on 21st of November
CEO Mark Burgess' total compensation includes salary of AU$483.6k
The total compensation is similar to the average for the industry
Over the past three years, Quickstep Holdings' EPS fell by 114% and over the past three years, the total loss to shareholders 74%
Quickstep Holdings Limited (ASX:QHL) has not performed well recently and CEO Mark Burgess will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 21st of November. 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.
View our latest analysis for Quickstep Holdings
Comparing Quickstep Holdings Limited's CEO Compensation With The Industry
At the time of writing, our data shows that Quickstep Holdings Limited has a market capitalization of AU$16m, and reported total annual CEO compensation of AU$696k for the year to June 2023. That's a slight decrease of 6.7% on the prior year. In particular, the salary of AU$483.6k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the Australian Aerospace & Defense industry with market capitalizations under AU$314m, the reported median total CEO compensation was AU$700k. So it looks like Quickstep Holdings compensates Mark Burgess in line with the median for the industry. Moreover, Mark Burgess also holds AU$111k worth of Quickstep Holdings stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$484k | AU$484k | 70% |
Other | AU$212k | AU$262k | 30% |
Total Compensation | AU$696k | AU$746k | 100% |
Talking in terms of the industry, salary represented approximately 65% of total compensation out of all the companies we analyzed, while other remuneration made up 35% of the pie. There isn't a significant difference between Quickstep Holdings and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Quickstep Holdings Limited's Growth
Over the last three years, Quickstep Holdings Limited has shrunk its earnings per share by 114% per year. In the last year, its revenue is up 8.9%.
The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Quickstep Holdings Limited Been A Good Investment?
With a total shareholder return of -74% over three years, Quickstep Holdings Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
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 Quickstep Holdings you should be aware of, and 1 of them is potentially serious.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
