Key Insights

• RMA Global will host its Annual General Meeting on 21st of November

• Salary of AU$333.1k is part of CEO Michael Davey's total remuneration

• The overall pay is comparable to the industry average

• RMA Global's three-year loss to shareholders was 78% while its EPS grew by 28% over the past three years

Shareholders of RMA Global Limited (ASX:RMY) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 21st of November could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for RMA Global

How Does Total Compensation For Michael Davey Compare With Other Companies In The Industry?

According to our data, RMA Global Limited has a market capitalization of AU$36m, and paid its CEO total annual compensation worth AU$408k over the year to June 2023. That's a slight decrease of 3.1% on the prior year. In particular, the salary of AU$333.1k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Australian Interactive Media and Services industry with market capitalizations under AU$306m, the reported median total CEO compensation was AU$493k. This suggests that RMA Global remunerates its CEO largely in line with the industry average.

On an industry level, roughly 55% of total compensation represents salary and 45% is other remuneration. It's interesting to note that RMA Global 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.

RMA Global Limited's Growth

RMA Global Limited has seen its earnings per share (EPS) increase by 28% a year over the past three years. Its revenue is up 14% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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.

Has RMA Global Limited Been A Good Investment?

With a total shareholder return of -78% over three years, RMA Global Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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 3 warning signs for RMA Global that investors should think about before committing capital to this stock.

Switching gears from RMA Global, 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.