Key Insights

• Spok Holdings will host its Annual General Meeting on 23rd of July
• Salary of US$500.0k is part of CEO Vince Kelly's total remuneration
• The overall pay is 280% above the industry average
• Spok Holdings' EPS grew by 99% over the past three years while total shareholder return over the past three years was 148%

Performance at Spok Holdings, Inc. (NASDAQ:SPOK) has been reasonably good and CEO Vince Kelly has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 23rd of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

How Does Total Compensation For Vince Kelly Compare With Other Companies In The Industry?

At the time of writing, our data shows that Spok Holdings, Inc. has a market capitalization of US$324m, and reported total annual CEO compensation of US$2.4m for the year to December 2023. That's just a smallish increase of 5.8% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$500k.

In comparison with other companies in the American Wireless Telecom industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$624k. This suggests that Vince Kelly is paid more than the median for the industry. Moreover, Vince Kelly also holds US$4.1m worth of Spok Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. Our data reveals that Spok Holdings allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Spok Holdings, Inc.'s Growth

Spok Holdings, Inc. has seen its earnings per share (EPS) increase by 99% a year over the past three years. In the last year, its revenue is up 5.1%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Spok Holdings, Inc. Been A Good Investment?

We think that the total shareholder return of 148%, over three years, would leave most Spok Holdings, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Spok Holdings (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com