Shareholders May Be More Conservative With EBOS Group Limited's (NZSE:EBO) CEO Compensation For Now

Simply Wall St · 10/16 18:06

Key Insights

  • EBOS Group to hold its Annual General Meeting on 23rd of October
  • Total pay for CEO John Cullity includes AU$1.57m salary
  • The total compensation is 51% higher than the average for the industry
  • EBOS Group's EPS grew by 7.2% over the past three years while total shareholder return over the past three years was 11%

CEO John Cullity has done a decent job of delivering relatively good performance at EBOS Group Limited (NZSE:EBO) recently. As shareholders go into the upcoming AGM on 23rd of October, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for EBOS Group

How Does Total Compensation For John Cullity Compare With Other Companies In The Industry?

Our data indicates that EBOS Group Limited has a market capitalization of NZ$7.0b, and total annual CEO compensation was reported as AU$6.6m for the year to June 2024. That's a notable decrease of 14% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$1.6m.

For comparison, other companies in the New Zealander Healthcare industry with market capitalizations ranging between NZ$3.3b and NZ$11b had a median total CEO compensation of AU$4.4m. Accordingly, our analysis reveals that EBOS Group Limited pays John Cullity north of the industry median. Moreover, John Cullity also holds NZ$12m worth of EBOS Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component 2024 2023 Proportion (2024)
Salary AU$1.6m AU$1.6m 24%
Other AU$5.1m AU$6.2m 76%
Total Compensation AU$6.6m AU$7.8m 100%

On an industry level, roughly 55% of total compensation represents salary and 45% is other remuneration. It's interesting to note that EBOS Group allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
NZSE:EBO CEO Compensation October 16th 2024

A Look at EBOS Group Limited's Growth Numbers

Over the past three years, EBOS Group Limited has seen its earnings per share (EPS) grow by 7.2% per year. In the last year, its revenue is up 7.8%.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has EBOS Group Limited Been A Good Investment?

EBOS Group Limited has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 2 warning signs for EBOS Group that you should be aware of before investing.

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