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Shareholders may be wondering what CEO Trevor Croker plans to do to improve the less than great performance at Aristocrat Leisure Limited (ASX:ALL) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 24 February 2023. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.
See our latest analysis for Aristocrat Leisure
How Does Total Compensation For Trevor Croker Compare With Other Companies In The Industry?
According to our data, Aristocrat Leisure Limited has a market capitalization of AU$24b, and paid its CEO total annual compensation worth AU$7.1m over the year to September 2022. That's slightly lower by 5.8% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$1.8m.
For comparison, other companies in the Australian Hospitality industry with market capitalizations above AU$12b, reported a median total CEO compensation of AU$19m. This suggests that Trevor Croker is paid below the industry median. Furthermore, Trevor Croker directly owns AU$21m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2022 | 2021 | Proportion (2022) |
| Salary | AU$1.8m | AU$1.8m | 26% |
| Other | AU$5.3m | AU$5.8m | 74% |
| Total Compensation | AU$7.1m | AU$7.5m | 100% |
Talking in terms of the industry, salary represented approximately 54% of total compensation out of all the companies we analyzed, while other remuneration made up 46% of the pie. Aristocrat Leisure pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Aristocrat Leisure Limited's Growth
Over the past three years, Aristocrat Leisure Limited has seen its earnings per share (EPS) grow by 9.6% per year. Its revenue is up 18% over the last year.
We think the revenue growth is good. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Aristocrat Leisure Limited Been A Good Investment?
With a three year total loss of 0.4% for the shareholders, Aristocrat Leisure Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.