We Think Some Shareholders May Hesitate To Increase Cash Converters International Limited's (ASX:CCV) CEO Compensation
Key Insights
Cash Converters International's Annual General Meeting to take place on 23rd of November
Salary of AU$613.9k is part of CEO Sam Budiselik's total remuneration
The overall pay is 115% above the industry average
Cash Converters International's EPS declined by 105% over the past three years while total shareholder return over the past three years was 39%
Under the guidance of CEO Sam Budiselik, Cash Converters International Limited (ASX:CCV) has performed reasonably well recently. As shareholders go into the upcoming AGM on 23rd of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.
Check out our latest analysis for Cash Converters International
Comparing Cash Converters International Limited's CEO Compensation With The Industry
At the time of writing, our data shows that Cash Converters International Limited has a market capitalization of AU$131m, and reported total annual CEO compensation of AU$1.7m for the year to June 2023. That's a notable decrease of 24% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$614k.
On comparing similar-sized companies in the Australian Consumer Finance industry with market capitalizations below AU$307m, we found that the median total CEO compensation was AU$770k. This suggests that Sam Budiselik is paid more than the median for the industry. Moreover, Sam Budiselik also holds AU$1.6m worth of Cash Converters International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$614k | AU$588k | 37% |
Other | AU$1.0m | AU$1.6m | 63% |
Total Compensation | AU$1.7m | AU$2.2m | 100% |
Talking in terms of the industry, salary represented approximately 47% of total compensation out of all the companies we analyzed, while other remuneration made up 53% of the pie. Cash Converters International pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Cash Converters International Limited's Growth Numbers
Over the last three years, Cash Converters International Limited has shrunk its earnings per share by 105% per year. In the last year, its revenue is up 23%.
The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Cash Converters International Limited Been A Good Investment?
We think that the total shareholder return of 39%, over three years, would leave most Cash Converters International Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
Some shareholders will be pleased by the relatively good results, however, the results could still be improved. We still think that some shareholders will be hesitant of increasing CEO pay until EPS growth improves, since they are already paid higher than the industry.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for Cash Converters International you should be aware of, and 1 of them is a bit concerning.
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.
