Yahoo Finance NZX Limited's (NZSE:NZX) CEO Might Not Expect Shareholders To Be So Generous This Year
Key Insights
NZX to hold its Annual General Meeting on 17th of April
CEO Mark Peterson's total compensation includes salary of NZ$600.0k
Total compensation is similar to the industry average
Over the past three years, NZX's EPS fell by 13% and over the past three years, the total loss to shareholders 34%
NZX Limited (NZSE:NZX) has not performed well recently and CEO Mark Peterson will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 17th of April. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Check out our latest analysis for NZX
How Does Total Compensation For Mark Peterson Compare With Other Companies In The Industry?
Our data indicates that NZX Limited has a market capitalization of NZ$371m, and total annual CEO compensation was reported as NZ$1.1m for the year to December 2023. Notably, that's a decrease of 49% over the year before. In particular, the salary of NZ$600.0k, makes up a fairly large portion of the total compensation being paid to the CEO.
In comparison with other companies in the New Zealand Capital Markets industry with market capitalizations ranging from NZ$167m to NZ$668m, the reported median CEO total compensation was NZ$1.1m. From this we gather that Mark Peterson is paid around the median for CEOs in the industry. Furthermore, Mark Peterson directly owns NZ$956k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | NZ$600k | NZ$600k | 57% |
Other | NZ$450k | NZ$1.4m | 43% |
Total Compensation | NZ$1.1m | NZ$2.0m | 100% |
Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. NZX is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at NZX Limited's Growth Numbers
Over the last three years, NZX Limited has shrunk its earnings per share by 13% per year. Its revenue is up 13% over the last year.
The decline in EPS is a bit concerning. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has NZX Limited Been A Good Investment?
With a total shareholder return of -34% over three years, NZX Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for NZX 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.
