How Much is ikeGPS Group's (NZSE:IKE) CEO Getting Paid?
Glenn Milnes is the CEO of ikeGPS Group Limited (NZSE:IKE), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for ikeGPS Group.
See our latest analysis for ikeGPS Group
How Does Total Compensation For Glenn Milnes Compare With Other Companies In The Industry?
According to our data, ikeGPS Group Limited has a market capitalization of NZ$151m, and paid its CEO total annual compensation worth NZ$794k over the year to March 2020. That's a notable increase of 21% on last year. Notably, the salary of NZ$794k is the entirety of the CEO compensation.
On comparing similar-sized companies in the industry with market capitalizations below NZ$277m, we found that the median total CEO compensation was NZ$456k. Accordingly, our analysis reveals that ikeGPS Group Limited pays Glenn Milnes north of the industry median. Furthermore, Glenn Milnes directly owns NZ$996k worth of shares in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | NZ$794k | NZ$658k | 100% |
Other | - | - | - |
Total Compensation | NZ$794k | NZ$658k | 100% |
Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. On a company level, ikeGPS Group prefers to reward its CEO through a salary, opting not to pay Glenn Milnes through non-salary benefits. 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.
A Look at ikeGPS Group Limited's Growth Numbers
Over the past three years, ikeGPS Group Limited has seen its earnings per share (EPS) grow by 22% per year. It achieved revenue growth of 1.7% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has ikeGPS Group Limited Been A Good Investment?
Most shareholders would probably be pleased with ikeGPS Group Limited for providing a total return of 189% 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...
ikeGPS Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, ikeGPS Group Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. And given most shareholders are probably very happy with recent returns, they might even think that Glenn deserves a raise!
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for ikeGPS Group that you should be aware of before investing.
Important note: ikeGPS Group 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.
This article by Simply Wall St is general in nature. 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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