Shareholders Will Probably Hold Off On Increasing Coventry Group Ltd's (ASX:CYG) CEO Compensation For The Time Being

editorial-team@simplywallst.com (Simply Wall St)
3 min read
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Key Insights

  • Coventry Group to hold its Annual General Meeting on 19th of October

  • CEO Robert Bulluss' total compensation includes salary of AU$474.2k

  • Total compensation is 45% above industry average

  • Coventry Group's EPS grew by 29% over the past three years while total shareholder return over the past three years was 46%

Under the guidance of CEO Robert Bulluss, Coventry Group Ltd (ASX:CYG) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 19th of October. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Coventry Group

How Does Total Compensation For Robert Bulluss Compare With Other Companies In The Industry?

At the time of writing, our data shows that Coventry Group Ltd has a market capitalization of AU$102m, and reported total annual CEO compensation of AU$835k for the year to June 2023. That's a notable decrease of 15% on last year. Notably, the salary which is AU$474.2k, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the Australian Trade Distributors industry with market capitalizations under AU$318m, the reported median total CEO compensation was AU$575k. Accordingly, our analysis reveals that Coventry Group Ltd pays Robert Bulluss north of the industry median. What's more, Robert Bulluss holds AU$1.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2023

2022

Proportion (2023)

Salary

AU$474k

AU$441k

57%

Other

AU$361k

AU$537k

43%

Total Compensation

AU$835k

AU$978k

100%

Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% is other remuneration. There isn't a significant difference between Coventry Group 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.

ceo-compensation
ceo-compensation

A Look at Coventry Group Ltd's Growth Numbers

Coventry Group Ltd has seen its earnings per share (EPS) increase by 29% a year over the past three years. It achieved revenue growth of 11% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Coventry Group Ltd Been A Good Investment?

We think that the total shareholder return of 46%, over three years, would leave most Coventry Group Ltd shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Coventry Group that investors should be aware of in a dynamic business environment.

Switching gears from Coventry Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.

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