Thu. Sep 21st, 2023
    Suncorp Group CEO Steve Johnston Deserves a Pay Raise, Here’s Why

    Suncorp Group Limited has shown impressive performance under the leadership of CEO Steve Johnston. As the Annual General Meeting approaches, shareholders will have the opportunity to review the financial results, discuss the company’s future strategy, and vote on matters such as executive remuneration.

    Comparing CEO compensation, Suncorp Group Limited has a market capitalization of AU$18 billion, and CEO Steve Johnston’s total annual compensation for the year ending June 2023 was reported as AU$3.9 million, a decrease of 21% compared to the previous year. While the salary of AU$2.03 million constitutes a significant portion of the CEO’s total compensation, it is noteworthy that Johnston’s pay is 62% below the industry average for similar companies in the Australian Insurance industry with market capitalizations above AU$12 billion.

    Additionally, Steve Johnston holds AU$5.1 million worth of Suncorp Group stock, indicating a significant personal stake in the company. This aligns their interests with that of the shareholders.

    In terms of Suncorp Group’s growth, the company has seen an increase in earnings per share (EPS) by 22% annually over the past three years, with a revenue growth of 22% in the last year. Such positive growth numbers reflect a healthy and growing business.

    Considering Suncorp Group Limited’s strong performance, with a total shareholder return of 86% over the past three years, it is understandable that shareholders may not object to a higher CEO remuneration, given the company’s size and success.

    In conclusion, while CEO pay is just one aspect to consider when evaluating business performance, Suncorp Group’s impressive growth and financial results support the case for CEO Steve Johnston to receive a pay raise. At the upcoming Annual General Meeting, shareholders will have the opportunity to discuss and vote on this matter, alongside other strategic decisions that may impact the future of the company.

    – Simply Wall St