We Think Shareholders Will Probably Be Generous With Smartpay Holdings Limited's (NZSE:SPY) CEO Compensation

Key Insights

• Smartpay Holdings' Annual General Meeting to take place on 12th of July
• Salary of NZ$749.6k is part of CEO Marty Pomeroy's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Smartpay Holdings' EPS grew by 106% and over the past three years, the total shareholder return was 45%

We have been pretty impressed with the performance at Smartpay Holdings Limited (NZSE:SPY) recently and CEO Marty Pomeroy deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 12th of July. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Smartpay Holdings

How Does Total Compensation For Marty Pomeroy Compare With Other Companies In The Industry?

According to our data, Smartpay Holdings Limited has a market capitalization of NZ$306m, and paid its CEO total annual compensation worth NZ$1.1m over the year to March 2024. We note that's an increase of 36% above last year. In particular, the salary of NZ$749.6k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the New Zealand Diversified Financial industry with market caps ranging from NZ$163m to NZ$653m, we found that the median CEO total compensation was NZ$1.4m. From this we gather that Marty Pomeroy is paid around the median for CEOs in the industry. Moreover, Marty Pomeroy also holds NZ$7.1m worth of Smartpay Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	NZ$750k	NZ$514k	67%
Other	NZ$364k	NZ$303k	33%
Total Compensation	NZ$1.1m	NZ$818k	100%

On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. Smartpay Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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.

Smartpay Holdings Limited's Growth

Smartpay Holdings Limited's earnings per share (EPS) grew 106% per year over the last three years. In the last year, its revenue is up 24%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Smartpay Holdings Limited Been A Good Investment?

We think that the total shareholder return of 45%, over three years, would leave most Smartpay Holdings Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

Shareholders may want to check for free if Smartpay Holdings insiders are buying or selling shares.

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