Key Insights

• PaySauce to hold its Annual General Meeting on 19th of September
• CEO Asantha Wijeyeratne's total compensation includes salary of NZ$305.6k
• The total compensation is 34% less than the average for the industry
• Over the past three years, PaySauce's EPS grew by 82% and over the past three years, the total loss to shareholders 30%

Shareholders may be wondering what CEO Asantha Wijeyeratne plans to do to improve the less than great performance at PaySauce Limited (NZSE:PYS) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 19th of September. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for PaySauce

How Does Total Compensation For Asantha Wijeyeratne Compare With Other Companies In The Industry?

Our data indicates that PaySauce Limited has a market capitalization of NZ$31m, and total annual CEO compensation was reported as NZ$359k for the year to March 2024. Notably, that's an increase of 44% over the year before. Notably, the salary which is NZ$305.6k, represents most of the total compensation being paid.

For comparison, other companies in the New Zealand Professional Services industry with market capitalizations below NZ$326m, reported a median total CEO compensation of NZ$546k. Accordingly, PaySauce pays its CEO under the industry median. Furthermore, Asantha Wijeyeratne directly owns NZ$6.1m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. PaySauce is paying a higher share of its remuneration through a salary in comparison to the overall 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.

PaySauce Limited's Growth

PaySauce Limited's earnings per share (EPS) grew 82% per year over the last three years. It achieved revenue growth of 33% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has PaySauce Limited Been A Good Investment?

With a total shareholder return of -30% over three years, PaySauce Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders are sitting on a loss is certainly disheartening. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 4 warning signs for PaySauce that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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.