Most Shareholders Will Probably Find That The Compensation For Supply@ME Capital plc's (LON:SYME) CEO Is Reasonable

Key Insights

• Supply@ME Capital will host its Annual General Meeting on 26th of June
• CEO Alessandro Zamboni's total compensation includes salary of UK£207.0k
• The overall pay is 32% below the industry average
• Over the past three years, Supply@ME Capital's EPS grew by 3.6% and over the past three years, the total loss to shareholders 96%

Shareholders may be wondering what CEO Alessandro Zamboni plans to do to improve the less than great performance at Supply@ME Capital plc (LON:SYME) recently. At the next AGM coming up on 26th of June, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out our latest analysis for Supply@ME Capital

How Does Total Compensation For Alessandro Zamboni Compare With Other Companies In The Industry?

Our data indicates that Supply@ME Capital plc has a market capitalization of UK£9.7m, and total annual CEO compensation was reported as UK£220k for the year to December 2023. That is, the compensation was roughly the same as last year. Notably, the salary which is UK£207.0k, represents most of the total compensation being paid.

In comparison with other companies in the British Software industry with market capitalizations under UK£157m, the reported median total CEO compensation was UK£325k. That is to say, Alessandro Zamboni is paid under the industry median.

Component	2023	2022	Proportion (2023)
Salary	UK£207k	UK£207k	94%
Other	UK£13k	UK£13k	6%
Total Compensation	UK£220k	UK£220k	100%

Talking in terms of the industry, salary represented approximately 64% of total compensation out of all the companies we analyzed, while other remuneration made up 36% of the pie. Supply@ME Capital is paying a higher share of its remuneration through a 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 Supply@ME Capital plc's Growth Numbers

Supply@ME Capital plc's earnings per share (EPS) grew 3.6% per year over the last three years. It achieved revenue growth of 14% over the last year.

We think the revenue growth is good. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Supply@ME Capital plc Been A Good Investment?

With a total shareholder return of -96% over three years, Supply@ME Capital plc shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning. The disappointing performance may have something to do with the flat earnings growth. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 7 warning signs for Supply@ME Capital (of which 5 make us uncomfortable!) that you should know about in order to have a holistic understanding of the 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com