Nick Pagent has been the CEO of Autosports Group Limited (ASX:ASG) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Autosports Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Autosports Group

Comparing Autosports Group Limited's CEO Compensation With the industry

At the time of writing, our data shows that Autosports Group Limited has a market capitalization of AU$263m, and reported total annual CEO compensation of AU$616k for the year to June 2020. That's a notable decrease of 34% on last year. In particular, the salary of AU$541.4k, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the industry with market capitalizations between AU$140m and AU$558m, we discovered that the median CEO total compensation of that group was AU$1.1m. Accordingly, Autosports Group pays its CEO under the industry median. What's more, Nick Pagent holds AU$254k worth of shares in the company in their own name.

Component 2020 2019 Proportion (2020) Salary AU$541k AU$600k 88% Other AU$74k AU$334k 12% Total Compensation AU$616k AU$934k 100%

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. It's interesting to note that Autosports Group pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower. ceo-compensation

Autosports Group Limited's Growth

Over the last three years, Autosports Group Limited has shrunk its earnings per share by 120% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is not a very positive result for shareholders. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Autosports Group Limited Been A Good Investment?

With a three year total loss of 43% for the shareholders, Autosports Group Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Autosports Group Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. It's tough to say that Nick is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.

Whatever your view on compensation, you might want to check if insiders are buying or selling Autosports Group shares (free trial).

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.

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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