Key Insights

• 8common to hold its Annual General Meeting on 2nd of November

• Total pay for CEO Andrew Bond includes AU$213.6k salary

• Total compensation is 50% below industry average

• 8common's three-year loss to shareholders was 39% while its EPS was down 38% over the past three years

Performance at 8common Limited (ASX:8CO) has been rather uninspiring recently and shareholders may be wondering how CEO Andrew Bond plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 2nd of November. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

See our latest analysis for 8common

Comparing 8common Limited's CEO Compensation With The Industry

At the time of writing, our data shows that 8common Limited has a market capitalization of AU$16m, and reported total annual CEO compensation of AU$259k for the year to June 2023. That is, the compensation was roughly the same as last year. Notably, the salary which is AU$213.6k, represents most of the total compensation being paid.

In comparison with other companies in the Australian Software industry with market capitalizations under AU$315m, the reported median total CEO compensation was AU$519k. In other words, 8common pays its CEO lower than the industry median.

On an industry level, around 59% of total compensation represents salary and 41% is other remuneration. It's interesting to note that 8common pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at 8common Limited's Growth Numbers

Over the last three years, 8common Limited has shrunk its earnings per share by 38% per year. It achieved revenue growth of 58% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.