Shareholders will probably not be disappointed by the robust results at IVE Group Limited (ASX:IGL) recently and they will be keeping this in mind as they go into the AGM on 21 November 2022. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

View our latest analysis for IVE Group

Comparing IVE Group Limited's CEO Compensation With The Industry

According to our data, IVE Group Limited has a market capitalization of AU$386m, and paid its CEO total annual compensation worth AU$1.0m over the year to June 2022. That's just a smallish increase of 3.5% on last year. In particular, the salary of AU$617.2k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from AU$148m to AU$590m, we found that the median CEO total compensation was AU$1.5m. In other words, IVE Group pays its CEO lower than the industry median.

Component 2022 2021 Proportion (2022) Salary AU$617k AU$618k 61% Other AU$397k AU$362k 39% Total Compensation AU$1.0m AU$980k 100%

On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. IVE Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. ceo-compensation

A Look at IVE Group Limited's Growth Numbers

IVE Group Limited has reduced its earnings per share by 7.4% a year over the last three years. In the last year, its revenue is up 16%.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. 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 IVE Group Limited Been A Good Investment?

We think that the total shareholder return of 43%, over three years, would leave most IVE Group Limited 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...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for IVE Group that investors should think about before committing capital to this stock.

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.

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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