Park Street A/S' (CPH:PARKST A) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Park Street will host its Annual General Meeting on 28th of April
• Total pay for CEO Pradeep Pattem includes kr.2.76m salary
• Total compensation is 46% above industry average
• Park Street's EPS declined by 58% over the past three years while total shareholder loss over the past three years was 28%

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The results at Park Street A/S (CPH:PARKST A) have been quite disappointing recently and CEO Pradeep Pattem bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 28th of April. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Park Street

Comparing Park Street A/S' CEO Compensation With The Industry

Our data indicates that Park Street A/S has a market capitalization of kr.499m, and total annual CEO compensation was reported as kr.2.9m for the year to December 2024. There was no change in the compensation compared to last year. In particular, the salary of kr.2.76m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Denmark Real Estate industry with market capitalizations below kr.1.3b, we found that the median total CEO compensation was kr.2.0m. Accordingly, our analysis reveals that Park Street A/S pays Pradeep Pattem north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	kr.2.8m	kr.2.8m	97%
Other	kr.100k	kr.100k	3%
Total Compensation	kr.2.9m	kr.2.9m	100%

Talking in terms of the industry, salary represented approximately 70% of total compensation out of all the companies we analyzed, while other remuneration made up 30% of the pie. Park Street pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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.

Park Street A/S' Growth

Over the last three years, Park Street A/S has shrunk its earnings per share by 58% per year. Its revenue is down 9.0% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Park Street A/S Been A Good Investment?

Given the total shareholder loss of 28% over three years, many shareholders in Park Street A/S are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Pradeep receives almost all of their compensation through a salary. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for Park Street you should be aware of, and 2 of them are concerning.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.