Yahoo Finance Most Shareholders Will Probably Find That The Compensation For AvePoint, Inc.'s (NASDAQ:AVPT) CEO Is Reasonable
Key Insights
AvePoint will host its Annual General Meeting on 7th of May
Salary of US$450.0k is part of CEO TJ Jiang's total remuneration
Total compensation is 71% below industry average
Over the past three years, AvePoint's EPS grew by 49% and over the past three years, the total loss to shareholders 24%
The performance at AvePoint, Inc. (NASDAQ:AVPT) has been rather lacklustre of late and shareholders may be wondering what CEO TJ Jiang is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 7th of May. 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.
Check out our latest analysis for AvePoint
How Does Total Compensation For TJ Jiang Compare With Other Companies In The Industry?
Our data indicates that AvePoint, Inc. has a market capitalization of US$1.4b, and total annual CEO compensation was reported as US$1.8m for the year to December 2023. We note that's a decrease of 17% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$450k.
On comparing similar companies from the American Software industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$6.2m. In other words, AvePoint pays its CEO lower than the industry median. Furthermore, TJ Jiang directly owns US$123m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$450k | US$450k | 25% |
Other | US$1.4m | US$1.8m | 75% |
Total Compensation | US$1.8m | US$2.2m | 100% |
On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. AvePoint pays out 25% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
AvePoint, Inc.'s Growth
AvePoint, Inc.'s earnings per share (EPS) grew 49% per year over the last three years. Its revenue is up 17% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has AvePoint, Inc. Been A Good Investment?
Given the total shareholder loss of 24% over three years, many shareholders in AvePoint, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
The loss to shareholders over the past three years is certainly concerning. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. A key question may be why the fundamentals have not yet been reflected into the share price. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.
Shareholders may want to check for free if AvePoint insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
