Key Insights

AUB Group will host its Annual General Meeting on 1st of November CEO Mike Emmett's total compensation includes salary of AU$971.8k Total compensation is similar to the industry average AUB Group's EPS declined by 1.9% over the past three years  while total shareholder return over the past three years was 78%

Performance at AUB Group Limited (ASX:AUB) has been reasonably good and CEO Mike Emmett has done a decent job of steering the company in the right direction. 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 1st of November. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for AUB Group

Comparing AUB Group Limited's CEO Compensation With The Industry

At the time of writing, our data shows that AUB Group Limited has a market capitalization of AU$3.0b, and reported total annual CEO compensation of AU$3.6m for the year to June 2023. That's just a smallish increase of 7.6% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$972k.

On examining similar-sized companies in the Australian Insurance industry with market capitalizations between AU$1.6b and AU$5.1b, we discovered that the median CEO total compensation of that group was AU$3.8m. This suggests that AUB Group remunerates its CEO largely in line with the industry average. What's more, Mike Emmett holds AU$4.7m 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$972k AU$973k 27% Other AU$2.7m AU$2.4m 73% Total Compensation AU$3.6m AU$3.4m 100%

On an industry level, around 52% of total compensation represents salary and 48% is other remuneration. AUB Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

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A Look at AUB Group Limited's Growth Numbers

AUB Group Limited has reduced its earnings per share by 1.9% a year over the last three years. It achieved revenue growth of 122% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has AUB Group Limited Been A Good Investment?

Boasting a total shareholder return of 78% over three years, AUB Group Limited has done well by shareholders. 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.

In Summary...

Although the company has performed relatively well, we still think there are some areas that could be improved. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for AUB Group that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this freelist of interesting companies that have HIGH return on equity and low debt.

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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.