Key Insights

Breville Group will host its Annual General Meeting on 7th of November Total pay for CEO Jim Clayton includes AU$1.67m salary Total compensation is 226% above industry average Breville Group's EPS grew by 16% over the past three years  while total shareholder loss over the past three years was 16%

Shareholders of Breville Group Limited (ASX:BRG) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 7th of November. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Breville Group

How Does Total Compensation For Jim Clayton Compare With Other Companies In The Industry?

According to our data, Breville Group Limited has a market capitalization of AU$3.1b, and paid its CEO total annual compensation worth AU$5.6m over the year to June 2023. We note that's a small decrease of 4.7% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$1.7m.

For comparison, other companies in the Australia Consumer Durables industry with market capitalizations ranging between AU$1.6b and AU$5.0b had a median total CEO compensation of AU$1.7m. This suggests that Jim Clayton is paid more than the median for the industry. What's more, Jim Clayton holds AU$6.0m 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$1.7m AU$1.7m 30% Other AU$3.9m AU$4.2m 70% Total Compensation AU$5.6m AU$5.8m 100%

Talking in terms of the industry, salary represented approximately 75% of total compensation out of all the companies we analyzed, while other remuneration made up 25% of the pie. Breville Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

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Breville Group Limited's Growth

Breville Group Limited's earnings per share (EPS) grew 16% per year over the last three years. Its revenue is up 4.2% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Breville Group Limited Been A Good Investment?

With a three year total loss of 16% for the shareholders, Breville Group Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Breville Group that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this freelist 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.