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Supply@ME Capital plc's (LON:SYME) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

  • Supply@ME Capital's Annual General Meeting to take place on 26th of June

  • Salary of UK£207.0k is part of CEO Alessandro Zamboni's total remuneration

  • Total compensation is 32% below industry average

  • Supply@ME Capital's three-year loss to shareholders was 96% while its EPS grew by 3.6% over the past three years

The performance at Supply@ME Capital plc (LON:SYME) has been rather lacklustre of late and shareholders may be wondering what CEO Alessandro Zamboni is planning to do about this. 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 26th of June. 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 Supply@ME Capital

Comparing Supply@ME Capital plc's CEO Compensation With The Industry

At the time of writing, our data shows that Supply@ME Capital plc has a market capitalization of UK£9.7m, and reported total annual CEO compensation of UK£220k for the year to December 2023. That is, the compensation was roughly the same as last year. In particular, the salary of UK£207.0k, makes up a huge portion of the total compensation being paid to the CEO.

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In comparison with other companies in the British Software industry with market capitalizations under UK£157m, the reported median total CEO compensation was UK£325k. That is to say, Alessandro Zamboni is paid under the industry median.

Component

2023

2022

Proportion (2023)

Salary

UK£207k

UK£207k

94%

Other

UK£13k

UK£13k

6%

Total Compensation

UK£220k

UK£220k

100%

On an industry level, roughly 64% of total compensation represents salary and 36% is other remuneration. Supply@ME Capital pays out 94% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

A Look at Supply@ME Capital plc's Growth Numbers

Supply@ME Capital plc's earnings per share (EPS) grew 3.6% per year over the last three years. In the last year, its revenue is up 14%.

This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Supply@ME Capital plc Been A Good Investment?

Few Supply@ME Capital plc shareholders would feel satisfied with the return of -96% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning. The disappointing performance may have something to do with the flat earnings growth. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 7 warning signs for Supply@ME Capital you should be aware of, and 5 of them are a bit unpleasant.

Switching gears from Supply@ME Capital, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com