It's Unlikely That ikeGPS Group Limited's (NZSE:IKE) CEO Will See A Huge Pay Rise This Year

Key Insights

• ikeGPS Group to hold its Annual General Meeting on 28th of September
• CEO Glenn Milnes' total compensation includes salary of NZ$1.02m
• Total compensation is 187% above industry average
• ikeGPS Group's three-year loss to shareholders was 28% while its EPS grew by 28% over the past three years

In the past three years, the share price of ikeGPS Group Limited (NZSE:IKE) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 28th of September could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for ikeGPS Group

How Does Total Compensation For Glenn Milnes Compare With Other Companies In The Industry?

Our data indicates that ikeGPS Group Limited has a market capitalization of NZ$109m, and total annual CEO compensation was reported as NZ$1.3m for the year to March 2023. That's a notable increase of 18% on last year. Notably, the salary which is NZ$1.02m, represents most of the total compensation being paid.

For comparison, other companies in the New Zealand Electronic industry with market capitalizations below NZ$335m, reported a median total CEO compensation of NZ$463k. This suggests that Glenn Milnes is paid more than the median for the industry. Furthermore, Glenn Milnes directly owns NZ$637k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	NZ$1.0m	NZ$836k	77%
Other	NZ$311k	NZ$287k	23%
Total Compensation	NZ$1.3m	NZ$1.1m	100%

Talking in terms of the industry, salary represented approximately 73% of total compensation out of all the companies we analyzed, while other remuneration made up 27% of the pie. Although there is a difference in how total compensation is set, ikeGPS Group more or less reflects the market in terms of setting the salary. 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.

ikeGPS Group Limited's Growth

ikeGPS Group Limited's earnings per share (EPS) grew 28% per year over the last three years. Its revenue is up 93% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has ikeGPS Group Limited Been A Good Investment?

With a three year total loss of 28% for the shareholders, ikeGPS Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for ikeGPS Group that you should be aware of before investing.

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.