The Stride Property Group Pay Raise Puzzle: Why Shareholders Might Just Say “No”

Alright, fellow mall moles, let’s crack open another case of corporate spending shenanigans. This time, we’re sniffing around Stride Property Group (NZSE:SPG), a New Zealand commercial real estate player with a portfolio that’s as diverse as a thrift-store treasure hunt. But here’s the twist: the company’s CEO, Philip Littlewood, is eyeing a pay raise, and shareholders? Well, they’re not exactly popping the champagne. Let’s dig into why this raise might be dead on arrival.

The Stapled Security Conundrum

First off, Stride Property Group isn’t your average real estate company. It’s a *stapled security*, meaning it’s a combo platter of two entities—Stride Property Limited and Stride Investment Management Limited—traded together under the ticker SPG. Think of it like a two-for-one deal at the mall, but instead of getting a free lip balm with your mascara, you’re getting a management company tossed in with your property portfolio.

This structure is supposed to align interests, but lately, it’s feeling more like a mismatched pair of socks. The company’s share price has been flatter than a pancake, and revenue in some areas is on the decline. Meanwhile, executive compensation is under the microscope, and shareholders are starting to ask: *Why should we approve a raise when the returns are stagnant?*

The Pay Raise Puzzle: Performance vs. Perks

Let’s talk numbers, because that’s where the real drama unfolds. Over the past three years, Stride Property Group has been a bit of a mixed bag. Sure, revenue has ticked up, but earnings per share? Not so much. It’s like buying a fancy coffee and getting a lukewarm latte—you paid extra, but you didn’t get the bang for your buck.

Now, fast-forward to the upcoming Annual General Meeting (AGM) on August 29th. The big question: Will shareholders approve a pay raise for CEO Philip Littlewood? The answer, based on recent trends, is a resounding *maybe not*.

Here’s the thing: Littlewood’s current compensation is already above the industry average. And when you factor in the company’s lackluster performance, shareholders are starting to side-eye the idea of a raise. It’s not just Stride, either—companies like Microsoft, Surgery Partners, and Riverstone Holdings are facing similar pushback. Shareholders are waking up to the fact that executive pay should reflect actual performance, not just a gold-plated title.

The Dividend Dilemma: Past Glories vs. Present Realities

Now, let’s talk dividends, because that’s where things get even juicier. Stride Property Group currently boasts a dividend yield of 5.93%, which sounds pretty sweet on paper. But here’s the catch: dividend payments have been on a downward slide over the past decade. It’s like that vintage band you loved in high school—once iconic, now just a nostalgia act.

The payout ratio sits at 49.77%, meaning dividends are covered by earnings, but the historical decline raises eyebrows. Are future payouts sustainable? And if the company is struggling to grow earnings per share, why should shareholders trust that dividends won’t follow the same downward trend?

The Insider Trading Angle: Who’s Really in Control?

Finally, let’s talk about who’s pulling the strings. Insider trading activity and ownership structure are always juicy clues in the corporate detective game. Stride’s alignment of interests is reinforced by SPL’s stake in each of the Stride Products, but that doesn’t mean all shareholders are on the same page.

If insiders are holding steady or even selling shares, that’s a red flag. Shareholders want to see confidence from those closest to the business. And if the CEO is asking for a raise while insiders are quietly exiting, well, that’s a plot twist even a mall mole couldn’t ignore.

The Verdict: A Pay Raise on Shaky Ground

So, what’s the final verdict? Well, based on the evidence, shareholders are likely to give the CEO pay raise a hard pass—for now. The company’s performance hasn’t been stellar, dividends are on shaky ground, and insider activity is raising more questions than answers.

But here’s the kicker: the upcoming AGM is the perfect stage for shareholders to make their voices heard. If Stride Property Group wants to win over skeptical investors, it’s time to deliver real, tangible results—not just empty promises.

And as for the CEO? Maybe it’s time to trade in the gold-plated title for a little more humility. After all, even the fanciest coffee can’t mask a lukewarm latte.

Stay sharp, mall moles. The spending conspiracy never sleeps.