Yahoo Finance We Think The Compensation For Me Today Limited's (NZSE:MEE) CEO Looks About Right
Key Insights
Me Today's Annual General Meeting to take place on 19th of December
CEO Michael Kerr's total compensation includes salary of NZ$250.0k
The overall pay is 55% below the industry average
Over the past three years, Me Today's EPS grew by 7.6% and over the past three years, the total loss to shareholders 96%
Performance at Me Today Limited (NZSE:MEE) has been rather uninspiring recently and shareholders may be wondering how CEO Michael Kerr plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 19th of December. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.
See our latest analysis for Me Today
How Does Total Compensation For Michael Kerr Compare With Other Companies In The Industry?
According to our data, Me Today Limited has a market capitalization of NZ$3.1m, and paid its CEO total annual compensation worth NZ$250k over the year to June 2023. We note that's an increase of 11% above last year. Notably, the salary of NZ$250k is the entirety of the CEO compensation.
For comparison, other companies in the New Zealander Healthcare industry with market capitalizations below NZ$326m, reported a median total CEO compensation of NZ$558k. Accordingly, Me Today pays its CEO under the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | NZ$250k | NZ$281k | 100% |
Other | - | - | |
Total Compensation | NZ$250k | NZ$225k | 100% |
On an industry level, roughly 82% of total compensation represents salary and 18% is other remuneration. At the company level, Me Today pays Michael Kerr solely through a salary, preferring to go down a conventional route. 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.
Me Today Limited's Growth
Me Today Limited's earnings per share (EPS) grew 7.6% per year over the last three years. In the last year, its revenue is up 19%.
We would argue that the modest growth in revenue is a notable positive. And the improvement in EPSis modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Me Today Limited Been A Good Investment?
The return of -96% over three years would not have pleased Me Today Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Me Today rewards its CEO solely through a salary, ignoring non-salary benefits completely. The fact that shareholders have earned a negative share price return is certainly disconcerting. Perhaps the poor price performance may have something to do with the the fact that earnings per share growth has not been performing as strongly either. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.
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 identified 5 warning signs for Me Today (4 shouldn't be ignored!) that you should be aware of before investing here.
Important note: Me Today is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.
