We Take A Look At Why Parkway Corporate Limited's (ASX:PWN) CEO Has Earned Their Pay Packet
The performance at Parkway Corporate Limited (ASX:PWN) has been quite strong recently and CEO Bahay Ozcakmak has played a role in it. Coming up to the next AGM on 29 November 2022, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
Check out our latest analysis for Parkway
How Does Total Compensation For Bahay Ozcakmak Compare With Other Companies In The Industry?
At the time of writing, our data shows that Parkway Corporate Limited has a market capitalization of AU$18m, and reported total annual CEO compensation of AU$326k for the year to June 2022. We note that's an increase of 18% above last year. In particular, the salary of AU$267.4k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under AU$303m, the reported median total CEO compensation was AU$349k. From this we gather that Bahay Ozcakmak is paid around the median for CEOs in the industry.
Component | 2022 | 2021 | Proportion (2022) |
Salary | AU$267k | AU$251k | 82% |
Other | AU$58k | AU$24k | 18% |
Total Compensation | AU$326k | AU$275k | 100% |
Talking in terms of the industry, salary represented approximately 59% of total compensation out of all the companies we analyzed, while other remuneration made up 41% of the pie. According to our research, Parkway has allocated a higher percentage of pay to salary in comparison to the wider industry. 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.
Parkway Corporate Limited's Growth
Parkway Corporate Limited has seen its earnings per share (EPS) increase by 50% a year over the past three years. In the last year, its revenue is up 194%.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Parkway Corporate Limited Been A Good Investment?
Boasting a total shareholder return of 33% over three years, Parkway Corporate Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Parkway that investors should think about before committing capital to this stock.
Switching gears from Parkway, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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