Key Insights

REA Group will host its Annual General Meeting on 15th of November Total pay for CEO Owen Wilson includes AU$1.67m salary Total compensation is 50% below industry average REA Group's EPS grew by 47% over the past three years  while total shareholder return over the past three years was 20%

Shareholders will be pleased by the robust performance of REA Group Limited (ASX:REA) recently and this will be kept in mind in the upcoming AGM on 15th of November. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

See our latest analysis for REA Group

How Does Total Compensation For Owen Wilson Compare With Other Companies In The Industry?

Our data indicates that REA Group Limited has a market capitalization of AU$21b, and total annual CEO compensation was reported as AU$4.6m for the year to June 2023. That's a fairly small increase of 6.6% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$1.7m.

For comparison, other companies in the Australian Interactive Media and Services industry with market capitalizations above AU$12b, reported a median total CEO compensation of AU$9.3m. This suggests that Owen Wilson is paid below the industry median. Moreover, Owen Wilson also holds AU$6.4m worth of REA Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component 2023 2022 Proportion (2023) Salary AU$1.7m AU$1.6m 36% Other AU$2.9m AU$2.7m 64% Total Compensation AU$4.6m AU$4.3m 100%

Speaking on an industry level, nearly 55% of total compensation represents salary, while the remainder of 45% is other remuneration. REA Group pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

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A Look at REA Group Limited's Growth Numbers

REA Group Limited has seen its earnings per share (EPS) increase by 47% a year over the past three years. In the last year, its revenue is down 1.8%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has REA Group Limited Been A Good Investment?

REA Group Limited has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

The company's overall performance, while not bad, could be better. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

Shareholders may want to check for free if REA Group insiders are buying or selling shares.

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.