It's Unlikely That Smart Parking Limited's (ASX:SPZ) CEO Will See A Huge Pay Rise This Year

Key Insights

• Smart Parking's Annual General Meeting to take place on 10th of November
• Total pay for CEO Paul Gillespie includes AU$396.4k salary
• Total compensation is 55% above industry average
• Smart Parking's EPS grew by 79% over the past three years while total shareholder return over the past three years was 173%

Under the guidance of CEO Paul Gillespie, Smart Parking Limited (ASX:SPZ) has performed reasonably well recently. 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 10th of November. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Smart Parking

Comparing Smart Parking Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Smart Parking Limited has a market capitalization of AU$124m, and reported total annual CEO compensation of AU$644k for the year to June 2023. We note that's an increase of 15% above last year. Notably, the salary which is AU$396.4k, represents most of the total compensation being paid.

In comparison with other companies in the Australian Electronic industry with market capitalizations under AU$310m, the reported median total CEO compensation was AU$416k. Hence, we can conclude that Paul Gillespie is remunerated higher than the industry median. Furthermore, Paul Gillespie directly owns AU$2.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	AU$396k	AU$329k	62%
Other	AU$248k	AU$233k	38%
Total Compensation	AU$644k	AU$562k	100%

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. Smart Parking is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Smart Parking Limited's Growth Numbers

Smart Parking Limited has seen its earnings per share (EPS) increase by 79% a year over the past three years. It achieved revenue growth of 18% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few 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 Smart Parking Limited Been A Good Investment?

We think that the total shareholder return of 173%, over three years, would leave most Smart Parking Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Smart Parking (1 is a bit unpleasant!) that you should be aware of before investing here.

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.