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Is Mastermyne Group Limited's (ASX:MYE) CEO Pay Justified?

Simply Wall St

In 2005 Tony Caruso was appointed CEO of Mastermyne Group Limited (ASX:MYE). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Mastermyne Group

How Does Tony Caruso's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Mastermyne Group Limited has a market cap of AU$93m, and reported total annual CEO compensation of AU$661k for the year to June 2019. That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at AU$353k. We examined a group of similar sized companies, with market capitalizations of below AU$291m. The median CEO total compensation in that group is AU$379k.

It would therefore appear that Mastermyne Group Limited pays Tony Caruso more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Mastermyne Group has changed from year to year.

ASX:MYE CEO Compensation, December 12th 2019
ASX:MYE CEO Compensation, December 12th 2019

Is Mastermyne Group Limited Growing?

Over the last three years Mastermyne Group Limited has grown its earnings per share (EPS) by an average of 125% per year (using a line of best fit). It achieved revenue growth of 18% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Mastermyne Group Limited Been A Good Investment?

Boasting a total shareholder return of 148% over three years, Mastermyne Group Limited has done well by shareholders. 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.

In Summary...

We compared total CEO remuneration at Mastermyne Group Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Mastermyne Group shares (free trial).

If you want to buy a stock that is better than Mastermyne Group, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.