Shareholders May Be More Conservative With CountPlus Limited's (ASX:CUP) CEO Compensation For Now

Under the guidance of CEO Matthew Rowe, CountPlus Limited (ASX:CUP) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 15 November 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for CountPlus

How Does Total Compensation For Matthew Rowe Compare With Other Companies In The Industry?

According to our data, CountPlus Limited has a market capitalization of AU$107m, and paid its CEO total annual compensation worth AU$757k over the year to June 2021. That's a notable increase of 12% on last year. In particular, the salary of AU$478.3k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$269m, we found that the median total CEO compensation was AU$347k. Hence, we can conclude that Matthew Rowe is remunerated higher than the industry median. Furthermore, Matthew Rowe directly owns AU$2.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	AU$478k	AU$459k	63%
Other	AU$279k	AU$219k	37%
Total Compensation	AU$757k	AU$678k	100%

Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. CountPlus sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at CountPlus Limited's Growth Numbers

Over the past three years, CountPlus Limited has seen its earnings per share (EPS) grow by 56% per year. It saw its revenue drop 2.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CountPlus Limited Been A Good Investment?

Most shareholders would probably be pleased with CountPlus Limited for providing a total return of 85% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 4 warning signs for CountPlus that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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.

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