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Is MoneyGram International, Inc.'s (NASDAQ:MGI) CEO Paid At A Competitive Rate?

Simply Wall St

Alex Holmes became the CEO of MoneyGram International, Inc. (NASDAQ:MGI) in 2016. 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.

See our latest analysis for MoneyGram International

How Does Alex Holmes's Compensation Compare With Similar Sized Companies?

According to our data, MoneyGram International, Inc. has a market capitalization of US$190m, and paid its CEO total annual compensation worth US$5.2m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$821k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.2m.

As you can see, Alex Holmes is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean MoneyGram International, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at MoneyGram International has changed over time.

NasdaqGS:MGI CEO Compensation, November 18th 2019

Is MoneyGram International, Inc. Growing?

MoneyGram International, Inc. has reduced its earnings per share by an average of 90% a year, over the last three years (measured with a line of best fit). Its revenue is down 13% over last year.

Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has MoneyGram International, Inc. Been A Good Investment?

Given the total loss of 75% over three years, many shareholders in MoneyGram International, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared total CEO remuneration at MoneyGram International, Inc. 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.

Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling MoneyGram International (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.