Key Insights

HUB24 to hold its Annual General Meeting on 16th of November Total pay for CEO Andrew Alcock includes AU$675.8k salary The total compensation is similar to the average for the industry HUB24's EPS grew by 50% over the past three years  while total shareholder return over the past three years was 54%

The performance at HUB24 Limited (ASX:HUB) has been quite strong recently and CEO Andrew Alcock has played a role in it. Coming up to the next AGM on 16th of November, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for HUB24

How Does Total Compensation For Andrew Alcock Compare With Other Companies In The Industry?

Our data indicates that HUB24 Limited has a market capitalization of AU$2.7b, and total annual CEO compensation was reported as AU$3.5m for the year to June 2023. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$676k.

On comparing similar companies from the Australian Capital Markets industry with market caps ranging from AU$1.6b to AU$5.0b, we found that the median CEO total compensation was AU$3.2m. So it looks like HUB24 compensates Andrew Alcock in line with the median for the industry. What's more, Andrew Alcock holds AU$36m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component 2023 2022 Proportion (2023) Salary AU$676k AU$622k 19% Other AU$2.8m AU$2.9m 81% Total Compensation AU$3.5m AU$3.5m 100%

On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. HUB24 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.

 ceo-compensation

A Look at HUB24 Limited's Growth Numbers

Over the past three years, HUB24 Limited has seen its earnings per share (EPS) grow by 50% per year. In the last year, its revenue is up 45%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has HUB24 Limited Been A Good Investment?

We think that the total shareholder return of 54%, over three years, would leave most HUB24 Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for HUB24 that you should be aware of before investing.

Switching gears from HUB24, 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.