In the past three years, shareholders of Ingenia Communities Group (ASX:INA) have seen a loss on their investment. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 17 November 2022 could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Ingenia Communities Group

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

Our data indicates that Ingenia Communities Group has a market capitalization of AU$1.6b, and total annual CEO compensation was reported as AU$1.7m for the year to June 2022. We note that's an increase of 17% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$676k.

For comparison, other companies in the same industry with market capitalizations ranging between AU$620m and AU$2.5b had a median total CEO compensation of AU$1.7m. So it looks like Ingenia Communities Group compensates Simon Owen in line with the median for the industry. Moreover, Simon Owen also holds AU$5.9m worth of Ingenia Communities Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component 2022 2021 Proportion (2022) Salary AU$676k AU$678k 40% Other AU$1.0m AU$780k 60% Total Compensation AU$1.7m AU$1.5m 100%

Talking in terms of the industry, salary represented approximately 40% of total compensation out of all the companies we analyzed, while other remuneration made up 60% of the pie. There isn't a significant difference between Ingenia Communities Group and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

 ceo-compensation

A Look at Ingenia Communities Group's Growth Numbers

Ingenia Communities Group has seen its earnings per share (EPS) increase by 24% a year over the past three years. Its revenue is up 17% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. 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 Ingenia Communities Group Been A Good Investment?

With a three year total loss of 5.6% for the shareholders, Ingenia Communities Group would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

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 Ingenia Communities Group that you should be aware of before investing.

Switching gears from Ingenia Communities Group, if you're hunting for a pristine balance sheet and premium returns, this freelist of high return, low debt companies is a great place to look.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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