It's Unlikely That Napier Port Holdings Limited's (NZSE:NPH) CEO Will See A Huge Pay Rise This Year

In the past three years, shareholders of Napier Port Holdings Limited (NZSE:NPH) have seen a loss on their investment. 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 15 December 2022 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 think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out the opportunities and risks within the NZ Infrastructure industry.

How Does Total Compensation For Todd Dawson Compare With Other Companies In The Industry?

According to our data, Napier Port Holdings Limited has a market capitalization of NZ$559m, and paid its CEO total annual compensation worth NZ$907k over the year to September 2022. That's a modest increase of 4.4% on the prior year. Notably, the salary which is NZ$583.0k, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between NZ$314m and NZ$1.3b had a median total CEO compensation of NZ$161k. Hence, we can conclude that Todd Dawson is remunerated higher than the industry median. Furthermore, Todd Dawson directly owns NZ$160k worth of shares in the company.

Component	2022	2021	Proportion (2022)
Salary	NZ$583k	NZ$558k	64%
Other	NZ$324k	NZ$311k	36%
Total Compensation	NZ$907k	NZ$869k	100%

Speaking on an industry level, nearly 57% of total compensation represents salary, while the remainder of 43% is other remuneration. Napier Port Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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.

Napier Port Holdings Limited's Growth

Napier Port Holdings Limited has seen its earnings per share (EPS) increase by 22% a year over the past three years. Its revenue is up 4.6% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Napier Port Holdings Limited Been A Good Investment?

Since shareholders would have lost about 14% over three years, some Napier Port Holdings Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

Shareholders may want to check for free if Napier Port Holdings insiders are buying or selling shares.

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.