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Dean Martin has been the CEO of Integrated Payment Technologies Limited (ASX:IP1) since 2018, and this article will examine the executive's compensation 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 Integrated Payment Technologies.
Comparing Integrated Payment Technologies Limited's CEO Compensation With the industry
Our data indicates that Integrated Payment Technologies Limited has a market capitalization of AU$29m, and total annual CEO compensation was reported as AU$261k for the year to June 2020. Notably, that's an increase of 31% over the year before. Notably, the salary which is AU$196.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under AU$261m, the reported median total CEO compensation was AU$440k. In other words, Integrated Payment Technologies pays its CEO lower than the industry median.
Talking in terms of the industry, salary represented approximately 55% of total compensation out of all the companies we analyzed, while other remuneration made up 45% of the pie. Integrated Payment Technologies pays out 75% of remuneration in the form of a salary, significantly higher than the industry average. 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.
Integrated Payment Technologies Limited's Growth
Integrated Payment Technologies Limited has reduced its earnings per share by 18% a year over the last three years. Its revenue is down 17% over the previous year.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Integrated Payment Technologies Limited Been A Good Investment?
With a three year total loss of 52% for the shareholders, Integrated Payment Technologies Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
As we touched on above, Integrated Payment Technologies Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. While we are quite underwhelmed with EPS growth, the shareholder returns over the past three years have also failed to impress us. Although we wouldn’t say CEO compensation is high, it’s tough to foresee shareholders warming up to thoughts of a bump anytime soon.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 5 warning signs for Integrated Payment Technologies (of which 2 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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