We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Spok Holdings, Inc.'s (NASDAQ:SPOK) CEO For Now

Key Insights

• Spok Holdings will host its Annual General Meeting on 23rd of July
• CEO Vince Kelly's total compensation includes salary of US$500.0k
• The overall pay is 280% above the industry average
• Over the past three years, Spok Holdings' EPS grew by 99% and over the past three years, the total shareholder return was 148%

CEO Vince Kelly has done a decent job of delivering relatively good performance at Spok Holdings, Inc. (NASDAQ:SPOK) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 23rd of July. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Spok Holdings

Comparing Spok Holdings, Inc.'s CEO Compensation With The Industry

Our data indicates that Spok Holdings, Inc. has a market capitalization of US$324m, and total annual CEO compensation was reported as US$2.4m for the year to December 2023. That's a modest increase of 5.8% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$500k.

On comparing similar companies from the American Wireless Telecom industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$624k. Accordingly, our analysis reveals that Spok Holdings, Inc. pays Vince Kelly north of the industry median. Furthermore, Vince Kelly directly owns US$4.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$500k	US$600k	21%
Other	US$1.9m	US$1.6m	79%
Total Compensation	US$2.4m	US$2.2m	100%

On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. Our data reveals that Spok Holdings allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Spok Holdings, Inc.'s Growth

Spok Holdings, Inc. has seen its earnings per share (EPS) increase by 99% a year over the past three years. In the last year, its revenue is up 5.1%.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Spok Holdings, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Spok Holdings, Inc. for providing a total return of 148% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Spok Holdings we think you should know about.

Switching gears from Spok Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com