In This Article:
Key Insights
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Air New Zealand will host its Annual General Meeting on 26th of September
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CEO Greg Foran's total compensation includes salary of NZ$1.80m
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Total compensation is similar to the industry average
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Air New Zealand's EPS grew by 57% over the past three years while total shareholder return over the past three years was 0.9%
Under the guidance of CEO Greg Foran, Air New Zealand Limited (NZSE:AIR) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 26th of September. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Check out our latest analysis for Air New Zealand
Comparing Air New Zealand Limited's CEO Compensation With The Industry
According to our data, Air New Zealand Limited has a market capitalization of NZ$2.5b, and paid its CEO total annual compensation worth NZ$4.0m over the year to June 2023. Notably, that's an increase of 9.8% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at NZ$1.8m.
For comparison, other companies in the New Zealand Airlines industry with market capitalizations ranging between NZ$1.7b and NZ$5.4b had a median total CEO compensation of NZ$5.4m. From this we gather that Greg Foran is paid around the median for CEOs in the industry. Furthermore, Greg Foran directly owns NZ$3.1m worth of shares in the company.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | NZ$1.8m | NZ$1.7m | 45% |
| Other | NZ$2.2m | NZ$1.9m | 55% |
| Total Compensation | NZ$4.0m | NZ$3.6m | 100% |
On an industry level, around 32% of total compensation represents salary and 68% is other remuneration. According to our research, Air New Zealand has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Air New Zealand Limited's Growth Numbers
Air New Zealand Limited has seen its earnings per share (EPS) increase by 57% a year over the past three years. Its revenue is up 132% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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.