Shareholders Will Probably Hold Off On Increasing Stride Property Group's (NZSE:SPG) CEO Compensation For The Time Being

Key Insights

• Stride Property Group's Annual General Meeting to take place on 3rd of July
• Total pay for CEO Philip Littlewood includes NZ$615.0k salary
• The overall pay is comparable to the industry average
• Stride Property Group's three-year loss to shareholders was 41% while its EPS was down 107% over the past three years

Shareholders of Stride Property Group (NZSE:SPG) will have been dismayed by the negative share price return over the last three years. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. Shareholders will have a chance to take their concerns to the board at the next AGM on 3rd of July and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

View our latest analysis for Stride Property Group

Comparing Stride Property Group's CEO Compensation With The Industry

According to our data, Stride Property Group has a market capitalization of NZ$660m, and paid its CEO total annual compensation worth NZ$1.1m over the year to March 2024. That's just a smallish increase of 4.0% on last year. In particular, the salary of NZ$615.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar companies from the New Zealand REITs industry with market caps ranging from NZ$328m to NZ$1.3b, we found that the median CEO total compensation was NZ$1.1m. This suggests that Stride Property Group remunerates its CEO largely in line with the industry average. What's more, Philip Littlewood holds NZ$758k worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	NZ$615k	NZ$615k	54%
Other	NZ$525k	NZ$481k	46%
Total Compensation	NZ$1.1m	NZ$1.1m	100%

On an industry level, roughly 37% of total compensation represents salary and 63% is other remuneration. Stride Property Group 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.

Stride Property Group's Growth

Over the last three years, Stride Property Group has shrunk its earnings per share by 107% per year. It achieved revenue growth of 29% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Stride Property Group Been A Good Investment?

The return of -41% over three years would not have pleased Stride Property Group shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

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 3 warning signs for Stride Property Group that investors should think about before committing capital to this stock.

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.

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