Shareholders May Be More Conservative With Pureprofile Ltd's (ASX:PPL) CEO Compensation For Now

Key Insights

• Pureprofile will host its Annual General Meeting on 26th of November
• Total pay for CEO Martin Filz includes AU$411.9k salary
• Total compensation is 41% above industry average
• Over the past three years, Pureprofile's EPS grew by 129% and over the past three years, the total shareholder return was 7.7%

Under the guidance of CEO Martin Filz, Pureprofile Ltd (ASX:PPL) 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 26th of November. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Pureprofile

Comparing Pureprofile Ltd's CEO Compensation With The Industry

According to our data, Pureprofile Ltd has a market capitalization of AU$31m, and paid its CEO total annual compensation worth AU$1.1m over the year to June 2023. Notably, that's a decrease of 25% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$412k.

For comparison, other companies in the Australian Media industry with market capitalizations below AU$307m, reported a median total CEO compensation of AU$758k. Accordingly, our analysis reveals that Pureprofile Ltd pays Martin Filz north of the industry median. Furthermore, Martin Filz directly owns AU$742k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	AU$412k	AU$416k	39%
Other	AU$657k	AU$1.0m	61%
Total Compensation	AU$1.1m	AU$1.4m	100%

Speaking on an industry level, nearly 57% of total compensation represents salary, while the remainder of 43% is other remuneration. Pureprofile pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Pureprofile Ltd's Growth Numbers

Pureprofile Ltd has seen its earnings per share (EPS) increase by 129% a year over the past three years. In the last year, its revenue is up 23%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Pureprofile Ltd Been A Good Investment?

Pureprofile Ltd has not done too badly by shareholders, with a total return of 7.7%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Pureprofile that investors should think about before committing capital to this stock.

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.

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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.