This article will reflect on the compensation paid to Frank Miles who has served as CEO of Macro Enterprises Inc. (CVE:MCR) since 2008. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Macro Enterprises.
How Does Total Compensation For Frank Miles Compare With Other Companies In The Industry?
Our data indicates that Macro Enterprises Inc. has a market capitalization of CA$72m, and total annual CEO compensation was reported as CA$787k for the year to December 2019. That's a notable decrease of 8.4% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$337k.
For comparison, other companies in the industry with market capitalizations below CA$266m, reported a median total CEO compensation of CA$1.1m. This suggests that Macro Enterprises remunerates its CEO largely in line with the industry average. Furthermore, Frank Miles directly owns CA$21m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, nearly 37% of total compensation represents salary, while the remainder of 63% is other remuneration. Macro Enterprises pays out 43% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Macro Enterprises Inc.'s Growth
Macro Enterprises Inc.'s earnings per share (EPS) grew 86% per year over the last three years. In the last year, its revenue is down 28%.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Macro Enterprises Inc. Been A Good Investment?
Given the total shareholder loss of 11% over three years, many shareholders in Macro Enterprises Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
As we noted earlier, Macro Enterprises pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, EPS growth is positive over the same time frame. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Macro Enterprises that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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