In 2005 Michael Falcone was appointed CEO of MMA Capital Management, LLC (NASDAQ:MMAC). 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Michael Falcone’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that MMA Capital Management, LLC has a market cap of US$157m, and is paying total annual CEO compensation of US$1.7m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$555k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$955k.
It would therefore appear that MMA Capital Management, LLC pays Michael Falcone 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at MMA Capital Management, below.
Is MMA Capital Management, LLC Growing?
On average over the last three years, MMA Capital Management, LLC has grown earnings per share (EPS) by 6.8% each year. It achieved revenue growth of 233% over the last year.
I like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. So while I’d stop short of saying growth is absolutely outstanding, there are definitely some clear positives!
Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has MMA Capital Management, LLC Been A Good Investment?
I think that the total shareholder return of 95%, over three years, would leave most MMA Capital Management, LLC shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by MMA Capital Management, LLC, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. Shareholders may want to check for free if MMA Capital Management insiders are buying or selling shares.
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 email@example.com.