Key Insights

• Repay Holdings will host its Annual General Meeting on 30th of May
• Total pay for CEO John Morris includes US$500.0k salary
• The total compensation is 153% higher than the average for the industry
• Over the past three years, Repay Holdings' EPS grew by 11% and over the past three years, the total loss to shareholders 58%

Shareholders of Repay Holdings Corporation (NASDAQ:RPAY) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 30th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Comparing Repay Holdings Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Repay Holdings Corporation has a market capitalization of US$956m, and reported total annual CEO compensation of US$8.9m for the year to December 2023. That's a notable increase of 46% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$500k.

On comparing similar companies from the American Diversified Financial industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$3.5m. This suggests that John Morris is paid more than the median for the industry. Furthermore, John Morris directly owns US$20m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Repay Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Repay Holdings Corporation's Growth

Repay Holdings Corporation has seen its earnings per share (EPS) increase by 11% a year over the past three years. Its revenue is up 5.8% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Repay Holdings Corporation Been A Good Investment?

The return of -58% over three years would not have pleased Repay Holdings Corporation shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Repay Holdings.

Switching gears from Repay Holdings, 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.