Key Insights

FINEOS Corporation Holdings' Annual General Meeting to take place on 5th of December Total pay for CEO Michael Kelly includes €390.8k salary The overall pay is 41% below the industry average Over the past three years, FINEOS Corporation Holdings' EPS fell by 60%  and over the past three years, the total loss to shareholders 56%

Performance at FINEOS Corporation Holdings plc (ASX:FCL) has not been particularly rosy recently and shareholders will likely be holding CEO Michael Kelly and the board accountable for this. The next AGM coming up on 5th of December will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. From our analysis below, we think CEO compensation looks appropriate for now.

Check out our latest analysis for FINEOS Corporation Holdings

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

Our data indicates that FINEOS Corporation Holdings plc has a market capitalization of AU$571m, and total annual CEO compensation was reported as €454k for the year to June 2023. Notably, that's a decrease of 8.0% over the year before. We note that the salary portion, which stands at €390.8k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Australian Software industry with market capitalizations ranging between AU$302m and AU$1.2b had a median total CEO compensation of €768k. In other words, FINEOS Corporation Holdings pays its CEO lower than the industry median. Furthermore, Michael Kelly directly owns AU$2.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Component 2023 2022 Proportion (2023) Salary €391k €391k 86% Other €64k €103k 14% Total Compensation €454k €494k 100%

Talking in terms of the industry, salary represented approximately 58% of total compensation out of all the companies we analyzed, while other remuneration made up 42% of the pie. It's interesting to note that FINEOS Corporation Holdings 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.

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FINEOS Corporation Holdings plc's Growth

FINEOS Corporation Holdings plc has reduced its earnings per share by 60% a year over the last three years. It saw its revenue drop 1.7% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 FINEOS Corporation Holdings plc Been A Good Investment?

With a total shareholder return of -56% over three years, FINEOS Corporation Holdings plc shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for FINEOS Corporation Holdings that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this freelist of interesting companies.

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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.