Yahoo Finance Shareholders May Be More Conservative With COG Financial Services Limited's (ASX:COG) CEO Compensation For Now
Key Insights
COG Financial Services' Annual General Meeting to take place on 27th of November
Salary of AU$444.0k is part of CEO Andrew Bennett's total remuneration
The total compensation is 56% higher than the average for the industry
Over the past three years, COG Financial Services' EPS grew by 94% and over the past three years, the total shareholder return was 104%
Under the guidance of CEO Andrew Bennett, COG Financial Services Limited (ASX:COG) has performed reasonably well recently. 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 27th of November. However, some shareholders will still be cautious of paying the CEO excessively.
View our latest analysis for COG Financial Services
Comparing COG Financial Services Limited's CEO Compensation With The Industry
Our data indicates that COG Financial Services Limited has a market capitalization of AU$256m, and total annual CEO compensation was reported as AU$1.0m for the year to June 2023. We note that's a decrease of 13% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$444k.
For comparison, other companies in the Australian Capital Markets industry with market capitalizations ranging between AU$153m and AU$610m had a median total CEO compensation of AU$667k. Accordingly, our analysis reveals that COG Financial Services Limited pays Andrew Bennett north of the industry median. What's more, Andrew Bennett holds AU$417k worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$444k | AU$484k | 43% |
Other | AU$599k | AU$717k | 57% |
Total Compensation | AU$1.0m | AU$1.2m | 100% |
On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. In COG Financial Services' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at COG Financial Services Limited's Growth Numbers
COG Financial Services Limited's earnings per share (EPS) grew 94% per year over the last three years. It achieved revenue growth of 14% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has COG Financial Services Limited Been A Good Investment?
Most shareholders would probably be pleased with COG Financial Services Limited for providing a total return of 104% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 1 which doesn't sit too well with us) in COG Financial Services we think you should know about.
Switching gears from COG Financial Services, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
