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Smart Parking Limited's (ASX:SPZ) CEO Compensation Is Looking A Bit Stretched At The Moment

Performance at Smart Parking Limited (ASX:SPZ) has been reasonably good and CEO Paul Gillespie has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 18 November 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Smart Parking

How Does Total Compensation For Paul Gillespie Compare With Other Companies In The Industry?

According to our data, Smart Parking Limited has a market capitalization of AU$96m, and paid its CEO total annual compensation worth AU$562k over the year to June 2022. We note that's an increase of 10% above last year. Notably, the salary which is AU$329.3k, represents a considerable chunk of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below AU$304m, we found that the median total CEO compensation was AU$378k. This suggests that Paul Gillespie is paid more than the median for the industry. Furthermore, Paul Gillespie directly owns AU$1.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2022

2021

Proportion (2022)

Salary

AU$329k

AU$293k

59%

Other

AU$233k

AU$217k

41%

Total Compensation

AU$562k

AU$510k

100%

On an industry level, roughly 74% of total compensation represents salary and 26% is other remuneration. It's interesting to note that Smart Parking allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

Smart Parking Limited's Growth

Smart Parking Limited has seen its earnings per share (EPS) increase by 92% a year over the past three years. In the last year, its revenue is up 68%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Smart Parking Limited Been A Good Investment?

With a total shareholder return of 10.0% over three years, Smart Parking Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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 can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Smart Parking that investors should be aware of in a dynamic business environment.

Important note: Smart Parking 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.

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

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.

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