We Think Some Shareholders May Hesitate To Increase Zeta Global Holdings Corp.'s (NYSE:ZETA) CEO Compensation

Key Insights

• Zeta Global Holdings to hold its Annual General Meeting on 18th of June
• CEO David Steinberg's total compensation includes salary of US$750.0k
• Total compensation is 157% above industry average
• Over the past three years, Zeta Global Holdings' EPS grew by 37% and over the past three years, the total shareholder return was 85%

Performance at Zeta Global Holdings Corp. (NYSE:ZETA) has been reasonably good and CEO David Steinberg has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 18th of June. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Zeta Global Holdings

Comparing Zeta Global Holdings Corp.'s CEO Compensation With The Industry

Our data indicates that Zeta Global Holdings Corp. has a market capitalization of US$3.6b, and total annual CEO compensation was reported as US$19m for the year to December 2023. That's a notable decrease of 9.0% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$750k.

For comparison, other companies in the American Software industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$7.3m. Hence, we can conclude that David Steinberg is remunerated higher than the industry median. Moreover, David Steinberg also holds US$475m worth of Zeta Global Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$750k	US$750k	4%
Other	US$18m	US$20m	96%
Total Compensation	US$19m	US$21m	100%

Talking in terms of the industry, salary represented approximately 16% of total compensation out of all the companies we analyzed, while other remuneration made up 84% of the pie. Interestingly, the company has chosen to go down an unconventional route in that it pays a smaller salary to David Steinberg as compared to non-salary compensation over the one-year period examined. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Zeta Global Holdings Corp.'s Growth Numbers

Over the past three years, Zeta Global Holdings Corp. has seen its earnings per share (EPS) grow by 37% per year. Its revenue is up 23% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Zeta Global Holdings Corp. Been A Good Investment?

Boasting a total shareholder return of 85% over three years, Zeta Global Holdings Corp. 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...

Zeta Global Holdings prefers rewarding its CEO through non-salary benefits. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Zeta Global Holdings that investors should look into moving forward.

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.

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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.