Stock Analysis

Repay Holdings Corporation's (NASDAQ:RPAY) CEO Compensation Is Looking A Bit Stretched At The Moment

NasdaqCM:RPAY
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Key Insights

  • Repay Holdings will host its Annual General Meeting on 30th of May
  • Salary of US$500.0k is part of CEO John Morris's total remuneration
  • The overall pay is 153% above the industry average
  • Over the past three years, Repay Holdings' EPS grew by 11% and over the past three years, the total loss to shareholders 58%

The underwhelming share price performance of Repay Holdings Corporation (NASDAQ:RPAY) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 30th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Repay Holdings

Comparing Repay Holdings Corporation's CEO Compensation With The Industry

Our data indicates that Repay Holdings Corporation has a market capitalization of US$956m, and total annual CEO compensation was reported as US$8.9m for the year to December 2023. Notably, that's an increase of 46% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$500k.

For comparison, other companies in the American Diversified Financial industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$3.5m. Accordingly, our analysis reveals that Repay Holdings Corporation pays John Morris north of the industry median. Moreover, John Morris also holds US$20m worth of Repay Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20232022Proportion (2023)
Salary US$500k US$476k 6%
Other US$8.4m US$5.6m 94%
Total CompensationUS$8.9m US$6.1m100%

Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. In Repay Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
NasdaqCM:RPAY CEO Compensation May 24th 2024

A Look at Repay Holdings Corporation's Growth Numbers

Over the past three years, Repay Holdings Corporation has seen its earnings per share (EPS) grow by 11% per year. Its revenue is up 5.8% 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. 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 Repay Holdings Corporation Been A Good Investment?

Few Repay Holdings Corporation shareholders would feel satisfied with the return of -58% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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.

Whatever your view on compensation, you might want to check if insiders are buying or selling Repay Holdings shares (free trial).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

Valuation is complex, but we're helping make it simple.

Find out whether Repay Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.