Adrian JohnsonTLDR:
- Technology One Limited will hold its Annual General Meeting on February 21st.
- CEO Ed Chung’s total compensation is significantly below the industry average.
- Over the past three years, Technology One’s EPS and total shareholder return have shown strong growth.
The solid performance of Technology One Limited has impressed shareholders, and CEO Ed Chung has delivered positive results. As shareholders prepare for the upcoming Annual General Meeting, they will be interested in the company’s future strategy and the opportunity to vote on matters such as executive remuneration. While the CEO’s compensation is lower than the industry average, it’s important to note that Chung also holds AU$11 million worth of shares in the company, demonstrating their investment in its success.
Technology One Limited has a market capitalization of AU$5.3 billion and reported total annual CEO compensation of AU$2.5 million for the year to September 2023. This is a 10% increase from the previous year. The salary portion of the compensation is AU$521,000, which is lower than the industry median. Other companies in the Australian Software industry with similar market capitalizations had a median total CEO compensation of AU$5.3 million. The proportion of non-salary compensation is higher for Technology One compared to the industry, suggesting that pay is tied to the company’s performance.
Technology One Limited has seen consistent growth with earnings per share (EPS) increasing by 17% per year over the past three years, and revenue up 17% in the last year. This positive growth reflects the company’s improvement in recent years. Over a three-year period, the total return for shareholders has been 99%, which may indicate a case for higher CEO compensation.
Although CEO remuneration may not be the central focus at the AGM, shareholders will have the opportunity to discuss strategic initiatives and growth prospects for the company. It is important to consider other elements of the business beyond CEO compensation when evaluating investment opportunities.
