Key Insights

• Park City Group to hold its Annual General Meeting on 20th of November
• CEO Randy Fields' total compensation includes salary of US$1.03m
• Total compensation is similar to the industry average
• Park City Group's total shareholder return over the past three years was 104% while its EPS grew by 75% over the past three years

The performance at Park City Group, Inc. (NYSE:TRAK) has been quite strong recently and CEO Randy Fields has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 20th of November. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for Park City Group

Comparing Park City Group, Inc.'s CEO Compensation With The Industry

Our data indicates that Park City Group, Inc. has a market capitalization of US$173m, and total annual CEO compensation was reported as US$1.7m for the year to June 2023. That's mostly flat as compared to the prior year's compensation. In particular, the salary of US$1.03m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the American Software industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$1.7m. So it looks like Park City Group compensates Randy Fields in line with the median for the industry. Furthermore, Randy Fields directly owns US$42m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 11% of total compensation represents salary, while the remainder of 89% is other remuneration. It's interesting to note that Park City Group 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.

Park City Group, Inc.'s Growth

Over the past three years, Park City Group, Inc. has seen its earnings per share (EPS) grow by 75% per year. In the last year, its revenue is up 5.8%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Park City Group, Inc. Been A Good Investment?

We think that the total shareholder return of 104%, over three years, would leave most Park City Group, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

So you may want to check if insiders are buying Park City Group shares with their own money (free access).

Important note: Park City Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.