Chris Tuckwell became the CEO of MACA Limited (ASX:MLD) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Chris Tuckwell's Compensation Compare With Similar Sized Companies?
Our data indicates that MACA Limited is worth AU$252m, and total annual CEO compensation is AU$899k. (This is based on the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$644k. We examined companies with market caps from AU$143m to AU$571m, and discovered that the median CEO total compensation of that group was AU$716k.
That means Chris Tuckwell receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at MACA, below.
Is MACA Limited Growing?
On average over the last three years, MACA Limited has shrunk earnings per share by 14% each year (measured with a line of best fit). Its revenue is up 11% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has MACA Limited Been A Good Investment?
With a three year total loss of 37%, MACA Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Chris Tuckwell is paid around what is normal the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at MACA.
If you want to buy a stock that is better than MACA, this free list of high return, low debt companies is a great place to look.
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