Why We Think Me Today Limited's (NZSE:MEE) CEO Compensation Is Not Excessive At All

Key Insights

• Me Today to hold its Annual General Meeting on 16th of December
• Salary of NZ$218.6k is part of CEO Michael Kerr's total remuneration
• The overall pay is 51% below the industry average
• Me Today's EPS grew by 29% over the past three years while total shareholder loss over the past three years was 98%

Shareholders may be wondering what CEO Michael Kerr plans to do to improve the less than great performance at Me Today Limited (NZSE:MEE) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 16th of December. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Me Today

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

At the time of writing, our data shows that Me Today Limited has a market capitalization of NZ$4.0m, and reported total annual CEO compensation of NZ$219k for the year to June 2024. Notably, that's a decrease of 13% over the year before. Notably, the salary of NZ$219k is the entirety of the CEO compensation.

On comparing similar-sized companies in the New Zealander Healthcare industry with market capitalizations below NZ$341m, we found that the median total CEO compensation was NZ$446k. This suggests that Michael Kerr is paid below the industry median. Moreover, Michael Kerr also holds NZ$128k worth of Me Today stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	NZ$219k	NZ$250k	100%
Other	-	-	-
Total Compensation	NZ$219k	NZ$250k	100%

Speaking on an industry level, nearly 56% of total compensation represents salary, while the remainder of 44% 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 is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Me Today Limited's Growth

Over the past three years, Me Today Limited has seen its earnings per share (EPS) grow by 29% per year. It saw its revenue drop 36% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Me Today Limited Been A Good Investment?

The return of -98% over three years would not have pleased Me Today Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Me Today pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The loss to shareholders over the past three years is certainly concerning. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key question may be why the fundamentals have not yet been reflected into the share price. 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. In our study, we found 5 warning signs for Me Today you should be aware of, and 4 of them don't sit too well with us.

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.