Key Insights

• ReposiTrak to hold its Annual General Meeting on 20th of November
• Salary of US$1.06m is part of CEO Randy Fields's total remuneration
• Total compensation is similar to the industry average
• ReposiTrak's total shareholder return over the past three years was 278% while its EPS grew by 18% over the past three years

We have been pretty impressed with the performance at ReposiTrak, Inc. (NYSE:TRAK) recently and CEO Randy Fields deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 20th of November. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Comparing ReposiTrak, Inc.'s CEO Compensation With The Industry

According to our data, ReposiTrak, Inc. has a market capitalization of US$385m, and paid its CEO total annual compensation worth US$1.8m over the year to June 2024. That's just a smallish increase of 5.7% on last year. In particular, the salary of US$1.06m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the American Software industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.8m. This suggests that ReposiTrak remunerates its CEO largely in line with the industry average. What's more, Randy Fields holds US$95m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. ReposiTrak is paying a higher share of its remuneration through a salary in comparison to the overall 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.

ReposiTrak, Inc.'s Growth

Over the past three years, ReposiTrak, Inc. has seen its earnings per share (EPS) grow by 18% per year. In the last year, its revenue is up 7.1%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ReposiTrak, Inc. Been A Good Investment?

Boasting a total shareholder return of 278% over three years, ReposiTrak, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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

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