Shareholders Will Probably Not Have Any Issues With Prophecy International Holdings Limited's (ASX:PRO) CEO Compensation

Key Insights

• Prophecy International Holdings to hold its Annual General Meeting on 17th of November
• CEO Brad Thomas' total compensation includes salary of AU$330.0k
• Total compensation is similar to the industry average
• Over the past three years, Prophecy International Holdings' EPS grew by 43% and over the past three years, the total shareholder return was 13%

Performance at Prophecy International Holdings Limited (ASX:PRO) has been reasonably good and CEO Brad Thomas has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 17th of November. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Prophecy International Holdings

How Does Total Compensation For Brad Thomas Compare With Other Companies In The Industry?

Our data indicates that Prophecy International Holdings Limited has a market capitalization of AU$42m, and total annual CEO compensation was reported as AU$443k for the year to June 2023. We note that's an increase of 16% above last year. In particular, the salary of AU$330.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Australian Software industry with market capitalizations under AU$315m, the reported median total CEO compensation was AU$519k. So it looks like Prophecy International Holdings compensates Brad Thomas in line with the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	AU$330k	AU$316k	75%
Other	AU$113k	AU$67k	25%
Total Compensation	AU$443k	AU$383k	100%

Talking in terms of the industry, salary represented approximately 59% of total compensation out of all the companies we analyzed, while other remuneration made up 41% of the pie. According to our research, Prophecy International 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.

Prophecy International Holdings Limited's Growth

Over the past three years, Prophecy International Holdings Limited has seen its earnings per share (EPS) grow by 43% per year. In the last year, its revenue is up 20%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Prophecy International Holdings Limited Been A Good Investment?

With a total shareholder return of 13% over three years, Prophecy International Holdings Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

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, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Prophecy International Holdings (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Prophecy International 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.