Yahoo Finance We Take A Look At Why Smartpay Holdings Limited's (NZSE:SPY) CEO Compensation Is Well Earned
Key Insights
Smartpay Holdings will host its Annual General Meeting on 12th of July
Total pay for CEO Marty Pomeroy includes NZ$749.6k salary
The overall pay is comparable to the industry average
Over the past three years, Smartpay Holdings' EPS grew by 106% and over the past three years, the total shareholder return was 45%
The performance at Smartpay Holdings Limited (NZSE:SPY) has been quite strong recently and CEO Marty Pomeroy has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 12th of July. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
See our latest analysis for Smartpay Holdings
Comparing Smartpay Holdings Limited's CEO Compensation With The Industry
Our data indicates that Smartpay Holdings Limited has a market capitalization of NZ$306m, and total annual CEO compensation was reported as NZ$1.1m for the year to March 2024. Notably, that's an increase of 36% over the year before. Notably, the salary which is NZ$749.6k, represents most of the total compensation being paid.
On examining similar-sized companies in the New Zealand Diversified Financial industry with market capitalizations between NZ$163m and NZ$653m, we discovered that the median CEO total compensation of that group was NZ$1.4m. So it looks like Smartpay Holdings compensates Marty Pomeroy in line with the median for the industry. Moreover, Marty Pomeroy also holds NZ$7.1m worth of Smartpay Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2024 | 2023 | Proportion (2024) |
Salary | NZ$750k | NZ$514k | 67% |
Other | NZ$364k | NZ$303k | 33% |
Total Compensation | NZ$1.1m | NZ$818k | 100% |
On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. According to our research, Smartpay Holdings has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Smartpay Holdings Limited's Growth
Smartpay Holdings Limited has seen its earnings per share (EPS) increase by 106% a year over the past three years. In the last year, its revenue is up 24%.
Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Smartpay Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with Smartpay Holdings Limited for providing a total return of 45% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
Shareholders may want to check for free if Smartpay Holdings insiders are buying or selling shares.
Switching gears from Smartpay Holdings, 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.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
