In 2009 Warren Haruki was appointed CEO of Maui Land & Pineapple Company, Inc. (NYSE:MLP). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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.
How Does Warren Haruki’s Compensation Compare With Similar Sized Companies?
According to our data, Maui Land & Pineapple Company, Inc. has a market capitalization of US$228m, and pays its CEO total annual compensation worth US$325k. (This number is for the twelve months until December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$325k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$901k.
Most shareholders would consider it a positive that Warren Haruki takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Maui Land & Pineapple Company has changed from year to year.
Is Maui Land & Pineapple Company, Inc. Growing?
Maui Land & Pineapple Company, Inc. has reduced its earnings per share by an average of 43% a year, over the last three years (measured with a line of best fit). Its revenue is down -55% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Maui Land & Pineapple Company, Inc. Been A Good Investment?
Boasting a total shareholder return of 120% over three years, Maui Land & Pineapple Company, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like Maui Land & Pineapple Company, Inc. pays its CEO less than similar sized companies.
Warren Haruki is paid less than CEOs of similar size companies. While the company isn’t growing on our analysis, shareholder returns have been good in recent years. So, while it would be nice to have EPS growth, on our analysis the CEO compensation is not an issue. So you may want to check if insiders are buying Maui Land & Pineapple Company shares with their own money (free access).
If you want to buy a stock that is better than Maui Land & Pineapple Company, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.