In This Article:
Key Insights
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Smartpay Holdings will host its Annual General Meeting on 12th of July
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Total pay for CEO Marty Pomeroy includes NZ$749.6k salary
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The overall pay is comparable to the industry average
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Over the past three years, Smartpay Holdings' EPS grew by 106% and over the past three years, the total shareholder return was 45%
The performance at Smartpay Holdings Limited (NZSE:SPY) has been quite strong recently and CEO Marty Pomeroy has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 12th of July. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
See our latest analysis for Smartpay Holdings
Comparing Smartpay Holdings Limited's CEO Compensation With The Industry
Our data indicates that Smartpay Holdings Limited has a market capitalization of NZ$306m, and total annual CEO compensation was reported as NZ$1.1m for the year to March 2024. Notably, that's an increase of 36% over the year before. Notably, the salary which is NZ$749.6k, represents most of the total compensation being paid.
On examining similar-sized companies in the New Zealand Diversified Financial industry with market capitalizations between NZ$163m and NZ$653m, we discovered that the median CEO total compensation of that group was NZ$1.4m. So it looks like Smartpay Holdings compensates Marty Pomeroy in line with the median for the industry. Moreover, Marty Pomeroy also holds NZ$7.1m worth of Smartpay Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | NZ$750k | NZ$514k | 67% |
| Other | NZ$364k | NZ$303k | 33% |
| Total Compensation | NZ$1.1m | NZ$818k | 100% |
On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. According to our research, Smartpay Holdings has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Smartpay Holdings Limited's Growth
Smartpay Holdings Limited has seen its earnings per share (EPS) increase by 106% a year over the past three years. In the last year, its revenue is up 24%.
Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.