Me Today Limited's (NZSE:MEE) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Me Today's Annual General Meeting to take place on 19th of December
• CEO Michael Kerr's total compensation includes salary of NZ$250.0k
• The total compensation is 55% less than the average for the industry
• Me Today's EPS grew by 7.6% over the past three years while total shareholder loss over the past three years was 96%

Performance at Me Today Limited (NZSE:MEE) has been rather uninspiring recently and shareholders may be wondering how CEO Michael Kerr plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 19th of December. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for Me Today

How Does Total Compensation For Michael Kerr Compare With Other Companies In The Industry?

According to our data, Me Today Limited has a market capitalization of NZ$3.1m, and paid its CEO total annual compensation worth NZ$250k over the year to June 2023. That's a notable increase of 11% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth NZ$250k.

For comparison, other companies in the New Zealander Healthcare industry with market capitalizations below NZ$326m, reported a median total CEO compensation of NZ$558k. This suggests that Michael Kerr is paid below the industry median.

Component	2023	2022	Proportion (2023)
Salary	NZ$250k	NZ$281k	100%
Other	-		-
Total Compensation	NZ$250k	NZ$225k	100%

On an industry level, around 82% of total compensation represents salary and 18% is other remuneration. At the company level, Me Today pays Michael Kerr solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Me Today Limited's Growth Numbers

Over the past three years, Me Today Limited has seen its earnings per share (EPS) grow by 7.6% per year. In the last year, its revenue is up 19%.

This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Me Today Limited Been A Good Investment?

The return of -96% over three years would not have pleased Me Today Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Me Today rewards its CEO solely through a salary, ignoring non-salary benefits completely. The loss to shareholders over the past three years is certainly concerning. Perhaps the poor price performance may have something to do with the the fact that earnings per share growth has not been performing as strongly either. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

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 5 warning signs for Me Today (of which 4 are concerning!) 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.