Should Shareholders Have Second Thoughts About A Pay Rise For Spark New Zealand Limited's (NZSE:SPK) CEO This Year?

Key Insights

• Spark New Zealand's Annual General Meeting to take place on 7th of November
• CEO Jolie Hodson's total compensation includes salary of NZ$1.27m
• The overall pay is 50% below the industry average
• Spark New Zealand's EPS declined by 15% over the past three years while total shareholder loss over the past three years was 38%

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The disappointing performance at Spark New Zealand Limited (NZSE:SPK) will make some shareholders rather disheartened. At the upcoming AGM on 7th of November, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

View our latest analysis for Spark New Zealand

How Does Total Compensation For Jolie Hodson Compare With Other Companies In The Industry?

According to our data, Spark New Zealand Limited has a market capitalization of NZ$4.6b, and paid its CEO total annual compensation worth NZ$1.3m over the year to June 2025. This means that the compensation hasn't changed much from last year. In particular, the salary of NZ$1.27m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the New Zealand Telecom industry with market capitalizations ranging between NZ$3.5b and NZ$11b had a median total CEO compensation of NZ$2.6m. That is to say, Jolie Hodson is paid under the industry median. Moreover, Jolie Hodson also holds NZ$781k worth of Spark New Zealand stock directly under their own name.

Component	2025	2024	Proportion (2025)
Salary	NZ$1.3m	NZ$1.3m	97%
Other	NZ$37k	NZ$52k	3%
Total Compensation	NZ$1.3m	NZ$1.3m	100%

Talking in terms of the industry, salary represented approximately 49% of total compensation out of all the companies we analyzed, while other remuneration made up 51% of the pie. Investors will find it interesting that Spark New Zealand pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Spark New Zealand Limited's Growth Numbers

Spark New Zealand Limited has reduced its earnings per share by 15% a year over the last three years. Its revenue is down 2.5% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Spark New Zealand Limited Been A Good Investment?

The return of -38% over three years would not have pleased Spark New Zealand Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Jolie receives almost all of their compensation through a salary. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Spark New Zealand you should be aware of, and 1 of them is potentially serious.

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.