A Look At Academies Australasia Group's (ASX:AKG) CEO Remuneration

Christopher Campbell became the CEO of Academies Australasia Group Limited (ASX:AKG) in 1996, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Academies Australasia Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Academies Australasia Group

How Does Total Compensation For Christopher Campbell Compare With Other Companies In The Industry?

Our data indicates that Academies Australasia Group Limited has a market capitalization of AU$33m, and total annual CEO compensation was reported as AU$450k for the year to June 2020. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at AU$425.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below AU$282m, reported a median total CEO compensation of AU$522k. So it looks like Academies Australasia Group compensates Christopher Campbell in line with the median for the industry. Moreover, Christopher Campbell also holds AU$5.0m worth of Academies Australasia Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. According to our research, Academies Australasia Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Academies Australasia Group Limited's Growth

Academies Australasia Group Limited has reduced its earnings per share by 8.2% a year over the last three years. It saw its revenue drop 9.6% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Academies Australasia Group Limited Been A Good Investment?

Since shareholders would have lost about 1.9% over three years, some Academies Australasia Group Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, Christopher is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

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 2 warning signs for Academies Australasia Group that investors should think about before committing capital to this stock.

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

This article by Simply Wall St is general in nature. 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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