Key Insights

Inghams Group to hold its Annual General Meeting on 6th of November Salary of AU$1.16m is part of CEO Andrew Reeves's total remuneration The overall pay is 68% above the industry average Inghams Group's total shareholder return over the past three years was 43% while its EPS grew by 15% over the past three years

Performance at Inghams Group Limited (ASX:ING) has been reasonably good and CEO Andrew Reeves has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 6th of November, 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 Inghams Group

Comparing Inghams Group Limited's CEO Compensation With The Industry

Our data indicates that Inghams Group Limited has a market capitalization of AU$1.4b, and total annual CEO compensation was reported as AU$2.6m for the year to June 2023. We note that's an increase of 70% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$1.2m.

For comparison, other companies in the Australian Food industry with market capitalizations ranging between AU$629m and AU$2.5b had a median total CEO compensation of AU$1.5m. Hence, we can conclude that Andrew Reeves is remunerated higher than the industry median. What's more, Andrew Reeves holds AU$164k worth of shares in the company in their own name.

Component 2023 2022 Proportion (2023) Salary AU$1.2m AU$1.1m 44% Other AU$1.5m AU$455k 56% Total Compensation AU$2.6m AU$1.5m 100%

On an industry level, around 71% of total compensation represents salary and 29% is other remuneration. Inghams Group pays a modest slice of remuneration through salary, as compared 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.

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A Look at Inghams Group Limited's Growth Numbers

Inghams Group Limited's earnings per share (EPS) grew 15% per year over the last three years. In the last year, its revenue is up 12%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Inghams Group Limited Been A Good Investment?

We think that the total shareholder return of 43%, over three years, would leave most Inghams Group Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for Inghams Group you should be aware of, and 1 of them is concerning.

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.

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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.