Shareholders will be pleased by the robust performance of Auswide Bank Ltd (ASX:ABA) recently and this will be kept in mind in the upcoming AGM on 23 November 2022. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

View our latest analysis for Auswide Bank

How Does Total Compensation For Martin Barrett Compare With Other Companies In The Industry?

At the time of writing, our data shows that Auswide Bank Ltd has a market capitalization of AU$250m, and reported total annual CEO compensation of AU$884k for the year to June 2022. Notably, that's an increase of 11% over the year before. In particular, the salary of AU$606.2k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from AU$148m to AU$590m, we found that the median CEO total compensation was AU$1.6m. That is to say, Martin Barrett is paid under the industry median. Moreover, Martin Barrett also holds AU$1.8m worth of Auswide Bank stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 54% of total compensation represents salary, while the remainder of 46% is other remuneration. It's interesting to note that Auswide Bank 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.

A Look at Auswide Bank Ltd's Growth Numbers

Over the past three years, Auswide Bank Ltd has seen its earnings per share (EPS) grow by 12% per year. It achieved revenue growth of 8.2% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Auswide Bank Ltd Been A Good Investment?

Auswide Bank Ltd has served shareholders reasonably well, with a total return of 13% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 1 which is a bit unpleasant) in Auswide Bank we think you should know about.

Important note: Auswide Bank is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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