Does Magnis Energy Technologies Ltd’s (ASX:MNS) CEO Salary Compare Well With Others?
Frank Houllis has been the CEO of Magnis Energy Technologies Ltd (ASX:MNS) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Magnis Energy Technologies
How Does Frank Houllis’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Magnis Energy Technologies Ltd has a market cap of AU$180m, and is paying total annual CEO compensation of AU$385k. (This figure is for the year to 2018). That’s a notable increase of 19% on last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$295k. We took a group of companies with market capitalizations below AU$278m, and calculated the median CEO compensation to be AU$365k.
So Frank Houllis receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Magnis Energy Technologies has changed from year to year.
Is Magnis Energy Technologies Ltd Growing?
Magnis Energy Technologies Ltd has increased its earnings per share (EPS) by an average of 40% a year, over the last three years It saw its revenue drop -100% over the last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Magnis Energy Technologies Ltd Been A Good Investment?
Given the total loss of 21% over three years, many shareholders in Magnis Energy Technologies Ltd are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
Remuneration for Frank Houllis is close enough to the median pay for a CEO of a similar sized company .
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Magnis Energy Technologies.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
