Key Insights

• t42 IoT Tracking Solutions’ Annual General Meeting to take place on 14th of November

• Salary of US$186.0k is part of CEO Avi Hartmann’s total remuneration

• The total compensation is 37% less than the average for the industry

• Over the past three years, t42 IoT Tracking Solutions’ EPS grew by 9.9% and over the past three years, the total loss to shareholders 71%

Performance at t42 IoT Tracking Solutions PLC (LON:TRAC) has been rather uninspiring recently and shareholders may be wondering how CEO Avi Hartmann plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 14th of November. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for t42 IoT Tracking Solutions

How Does Total Compensation For Avi Hartmann Compare With Other Companies In The Industry?

According to our data, t42 IoT Tracking Solutions PLC has a market capitalization of UK£1.2m, and paid its CEO total annual compensation worth US$200k over the year to December 2022. We note that’s a small decrease of 3.8% on last year. In particular, the salary of US$186.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the British Software industry with market capitalizations under UK£163m, the reported median total CEO compensation was US$318k. That is to say, Avi Hartmann is paid under the industry median. What’s more, Avi Hartmann holds UK£126k worth of shares in the company in their own name.

On an industry level, roughly 66% of total compensation represents salary and 34% is other remuneration. According to our research, t42 IoT Tracking Solutions 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.

A Look at t42 IoT Tracking Solutions PLC’s Growth Numbers

t42 IoT Tracking Solutions PLC’s earnings per share (EPS) grew 9.9% per year over the last three years. It saw its revenue drop 13% over the last year.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. 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 t42 IoT Tracking Solutions PLC Been A Good Investment?

Few t42 IoT Tracking Solutions PLC shareholders would feel satisfied with the return of -71% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude…

The fact that shareholders have earned a negative share price return is certainly disconcerting. The disappointing performance may have something to do with the flat earnings growth. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board’s plan is likely to improve company performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 6 warning signs for t42 IoT Tracking Solutions you should be aware of, and 3 of them are concerning.

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.

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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.