Technology One CEO’s Compensation: A Closer Look at Ed Chung’s Remuneration
Shareholders prepare for Technology One’s Annual General Meeting as CEO Ed Chung’s compensation comes under scrutiny
Shareholders of Technology One Limited (ASX:TNE) are eagerly anticipating the upcoming Annual General Meeting (AGM) on February 21st. The AGM will provide an opportunity for the board to review the company’s performance, discuss future strategies, and vote on resolutions, including executive remuneration. CEO Ed Chung has played a pivotal role in the company’s success, and his compensation package will be a topic of interest among shareholders. In this article, we delve into the details of Chung’s remuneration and compare it with industry standards, as well as explore Technology One’s growth and shareholder returns.
CEO Compensation in Comparison to the Industry:
According to recent data, Technology One Limited has a market capitalization of AU$5.3 billion, with CEO Ed Chung receiving a total annual compensation of AU$2.5 million for the year ending September 2023. This represents a 10% increase from the previous year. However, Chung’s salary of AU$521,000 is lower than the median CEO salary of AU$5.3 million in the Australian Software industry.
It is worth noting that Chung holds AU$11 million worth of Technology One stock, indicating a significant personal stake in the company. This alignment of interests between the CEO and shareholders is an encouraging sign.
Breakdown of Compensation:
Chung’s total compensation consists of a salary of AU$521,000, accounting for 21% of the total, and other remuneration totaling AU$2 million, making up the remaining 79%. Technology One’s allocation of a smaller proportion of compensation to salary suggests that executive pay is closely tied to the company’s performance.
Technology One’s Growth:
Over the past three years, Technology One Limited has demonstrated impressive growth, with its earnings per share (EPS) increasing by 17% annually. Additionally, the company’s revenue has seen a significant uptick of 17% in the last year alone. These positive indicators reflect a healthy and thriving business, which is likely to be a topic of discussion during the AGM.
Shareholder Returns:
Technology One Limited has also delivered substantial returns to its shareholders, with a total shareholder return of 99% over the past three years. This impressive performance is likely to alleviate concerns among shareholders regarding Chung’s compensation, as the company’s success outweighs any potential concerns about executive pay.
Conclusion:
As shareholders prepare for Technology One’s AGM, CEO Ed Chung’s compensation package will undoubtedly be a point of interest. While his salary is lower than the industry median, Chung’s total compensation of AU$2.5 million reflects his significant contribution to the company’s success. With Technology One’s robust growth and impressive shareholder returns, the focus of the AGM is likely to shift towards strategic decisions that will shape the company’s future. As investors evaluate the company’s prospects, it is essential to consider multiple factors beyond CEO remuneration.