GDI Property Group (ASX:GDI) has not performed well recently and CEO Steve Gillard will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 10 November 2022. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for GDI Property Group

Comparing GDI Property Group's CEO Compensation With The Industry

According to our data, GDI Property Group has a market capitalization of AU$412m, and paid its CEO total annual compensation worth AU$1.7m over the year to June 2022. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$738k.

For comparison, other companies in the same industry with market capitalizations ranging between AU$156m and AU$624m had a median total CEO compensation of AU$692k. This suggests that Steve Gillard is paid more than the median for the industry. Moreover, Steve Gillard also holds AU$24m worth of GDI Property Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 40% of total compensation represents salary and 60% is other remuneration. GDI Property Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

GDI Property Group's Growth

GDI Property Group has reduced its funds from operations (FFO) by 16% per year over the last three years. Its revenue is down 19% over the previous year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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.

Has GDI Property Group Been A Good Investment?

The return of -39% over three years would not have pleased GDI Property Group shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for GDI Property Group that investors should think about before committing capital to this stock.

Switching gears from GDI Property Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here