Key Insights

• Australian Agricultural Projects to hold its Annual General Meeting on 30th of November

• CEO Paul Challis' total compensation includes salary of AU$140.0k

• The overall pay is 62% below the industry average

• Australian Agricultural Projects' three-year loss to shareholders was 40% while its EPS grew by 84% over the past three years

Shareholders may be wondering what CEO Paul Challis plans to do to improve the less than great performance at Australian Agricultural Projects Ltd (ASX:AAP) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 30th of November. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for Australian Agricultural Projects

How Does Total Compensation For Paul Challis Compare With Other Companies In The Industry?

According to our data, Australian Agricultural Projects Ltd has a market capitalization of AU$5.5m, and paid its CEO total annual compensation worth AU$158k over the year to June 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of AU$140.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Australian Food industry with market capitalizations below AU$304m, we found that the median total CEO compensation was AU$418k. This suggests that Paul Challis is paid below the industry median. What's more, Paul Challis holds AU$768k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 71% of total compensation represents salary and 29% is other remuneration. Australian Agricultural Projects is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Australian Agricultural Projects Ltd's Growth

Over the past three years, Australian Agricultural Projects Ltd has seen its earnings per share (EPS) grow by 84% per year. In the last year, its revenue is up 27%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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.