It May Be Possible That PARKD Limited's (ASX:PKD) CEO Compensation Could Get Bumped Up
Key Insights
PARKD will host its Annual General Meeting on 21st of November
Salary of AU$200.0k is part of CEO Peter McUtchen's total remuneration
Total compensation is 48% below industry average
Over the past three years, PARKD's EPS grew by 20% and over the past three years, the total shareholder return was 6.9%
Shareholders will be pleased by the robust performance of PARKD Limited (ASX:PKD) recently and this will be kept in mind in the upcoming AGM on 21st of November. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.
Check out our latest analysis for PARKD
How Does Total Compensation For Peter McUtchen Compare With Other Companies In The Industry?
According to our data, PARKD Limited has a market capitalization of AU$3.2m, and paid its CEO total annual compensation worth AU$229k over the year to June 2023. We note that's a decrease of 27% compared to last year. We note that the salary portion, which stands at AU$200.0k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the Australian Commercial Services industry with market capitalizations below AU$314m, we found that the median total CEO compensation was AU$442k. In other words, PARKD pays its CEO lower than the industry median. Moreover, Peter McUtchen also holds AU$318k worth of PARKD stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$200k | AU$190k | 87% |
Other | AU$29k | AU$125k | 13% |
Total Compensation | AU$229k | AU$315k | 100% |
Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. It's interesting to note that PARKD pays out a greater portion of remuneration through salary, compared to the 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.
A Look at PARKD Limited's Growth Numbers
PARKD Limited has seen its earnings per share (EPS) increase by 20% a year over the past three years. In the last year, its revenue is down 45%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 PARKD Limited Been A Good Investment?
With a total shareholder return of 6.9% over three years, PARKD Limited has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
To Conclude...
While the company seems to be headed in the right direction performance-wise, there's always room for improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 4 warning signs for PARKD that investors should think about before committing capital to this stock.
Switching gears from PARKD, 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.
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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.
