Key Insights

Chorus will host its Annual General Meeting on 8th of November Total pay for CEO JB Rousselot includes NZ$1.34m salary The total compensation is 38% higher than the average for the industry Chorus' EPS declined by 21% over the past three years  while total shareholder loss over the past three years was 3.4%

Chorus Limited (NZSE:CNU) has not performed well recently and CEO JB Rousselot will probably need to up their game. At the upcoming AGM on 8th of November, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Chorus

How Does Total Compensation For JB Rousselot Compare With Other Companies In The Industry?

According to our data, Chorus Limited has a market capitalization of NZ$3.1b, and paid its CEO total annual compensation worth NZ$3.0m over the year to June 2023. Notably, that's an increase of 24% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at NZ$1.3m.

For comparison, other companies in the New Zealand Telecom industry with market capitalizations ranging between NZ$1.7b and NZ$5.5b had a median total CEO compensation of NZ$2.2m. Accordingly, our analysis reveals that Chorus Limited pays JB Rousselot north of the industry median. What's more, JB Rousselot holds NZ$298k worth of shares in the company in their own name.

Component 2023 2022 Proportion (2023) Salary NZ$1.3m NZ$1.3m 44% Other NZ$1.7m NZ$1.1m 56% Total Compensation NZ$3.0m NZ$2.4m 100%

On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. There isn't a significant difference between Chorus and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

 ceo-compensation

Chorus Limited's Growth

Chorus Limited has reduced its earnings per share by 21% a year over the last three years. Its revenue is up 1.6% over the last year.

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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Chorus Limited Been A Good Investment?

With a three year total loss of 3.4% for the shareholders, Chorus Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 2 which can't be ignored) in Chorus we think you should know about.

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

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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.