We Think Steel & Tube Holdings Limited's (NZSE:STU) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Steel & Tube Holdings' Annual General Meeting to take place on 22nd of October
• CEO Mark Malpass' total compensation includes salary of NZ$1.07m
• Total compensation is 194% above industry average
• Steel & Tube Holdings' three-year loss to shareholders was 38% while its EPS was down 109% over the past three years

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Steel & Tube Holdings Limited (NZSE:STU) has not performed well recently and CEO Mark Malpass will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 22nd of October. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Steel & Tube Holdings

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

Our data indicates that Steel & Tube Holdings Limited has a market capitalization of NZ$129m, and total annual CEO compensation was reported as NZ$1.2m for the year to June 2025. We note that's a decrease of 20% compared to last year. We note that the salary portion, which stands at NZ$1.07m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the New Zealand Metals and Mining industry with market capitalizations below NZ$349m, reported a median total CEO compensation of NZ$425k. Accordingly, our analysis reveals that Steel & Tube Holdings Limited pays Mark Malpass north of the industry median. What's more, Mark Malpass holds NZ$719k worth of shares in the company in their own name.

On an industry level, roughly 67% of total compensation represents salary and 33% is other remuneration. Steel & Tube Holdings 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.

Steel & Tube Holdings Limited's Growth

Steel & Tube Holdings Limited has reduced its earnings per share by 109% a year over the last three years. In the last year, its revenue is down 20%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Steel & Tube Holdings Limited Been A Good Investment?

The return of -38% over three years would not have pleased Steel & Tube Holdings Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Steel & Tube Holdings that you should be aware of before investing.

Important note: Steel & Tube Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.