How Much Is ikeGPS Group Limited (NZSE:IKE) Paying Its CEO?

Glenn Milnes is the CEO of ikeGPS Group Limited (NZSE:IKE), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for ikeGPS Group.

See our latest analysis for ikeGPS Group

Comparing ikeGPS Group Limited's CEO Compensation With the industry

Our data indicates that ikeGPS Group Limited has a market capitalization of NZ$155m, and total annual CEO compensation was reported as NZ$794k for the year to March 2020. We note that's an increase of 27% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth NZ$794k.

In comparison with other companies in the industry with market capitalizations under NZ$285m, the reported median total CEO compensation was NZ$434k. This suggests that Glenn Milnes is paid more than the median for the industry. What's more, Glenn Milnes holds NZ$1.0m worth of shares in the company in their own name.

On an industry level, around 57% of total compensation represents salary and 43% is other remuneration. On a company level, ikeGPS Group prefers to reward its CEO through a salary, opting not to pay Glenn Milnes through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ikeGPS Group Limited's Growth

ikeGPS Group Limited's earnings per share (EPS) grew 22% per year over the last three years. It achieved revenue growth of 1.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has ikeGPS Group Limited Been A Good Investment?

Boasting a total shareholder return of 276% over three years, ikeGPS Group Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

ikeGPS Group rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Glenn is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Glenn's performance creates value for 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 ikeGPS 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. 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.
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