It Looks Like Shareholders Would Probably Approve NZX Limited's (NZSE:NZX) CEO Compensation Package

Key Insights

• NZX to hold its Annual General Meeting on 1st of May
• CEO Mark Peterson's total compensation includes salary of NZ$600.0k
• The overall pay is comparable to the industry average
• Over the past three years, NZX's EPS grew by 13% and over the past three years, the total shareholder return was 37%

Our free stock report includes 1 warning sign investors should be aware of before investing in NZX. Read for free now.

The performance at NZX Limited (NZSE:NZX) has been quite strong recently and CEO Mark Peterson has played a role in it. Coming up to the next AGM on 1st of May, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for NZX

How Does Total Compensation For Mark Peterson Compare With Other Companies In The Industry?

Our data indicates that NZX Limited has a market capitalization of NZ$486m, and total annual CEO compensation was reported as NZ$1.5m for the year to December 2024. Notably, that's an increase of 39% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at NZ$600k.

On comparing similar companies from the New Zealand Capital Markets industry with market caps ranging from NZ$167m to NZ$669m, we found that the median CEO total compensation was NZ$1.2m. This suggests that NZX remunerates its CEO largely in line with the industry average. What's more, Mark Peterson holds NZ$1.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	NZ$600k	NZ$600k	41%
Other	NZ$861k	NZ$450k	59%
Total Compensation	NZ$1.5m	NZ$1.1m	100%

On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. In NZX's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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 NZX Limited's Growth Numbers

Over the past three years, NZX Limited has seen its earnings per share (EPS) grow by 13% per year. Its revenue is up 11% over the last year.

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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has NZX Limited Been A Good Investment?

Most shareholders would probably be pleased with NZX Limited for providing a total return of 37% over three years. 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for NZX that you should be aware of before investing.

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.

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

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.