Murray Cod Australia Limited's (ASX:MCA) CEO Might Not Expect Shareholders To Be So Generous This Year
Key Insights
Murray Cod Australia will host its Annual General Meeting on 28th of November
Total pay for CEO Matt Ryan includes AU$379.5k salary
Total compensation is 179% above industry average
Murray Cod Australia's three-year loss to shareholders was 26% while its EPS was down 74% over the past three years
The results at Murray Cod Australia Limited (ASX:MCA) have been quite disappointing recently and CEO Matt Ryan bears some responsibility for this. At the upcoming AGM on 28th of November, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.
Check out our latest analysis for Murray Cod Australia
How Does Total Compensation For Matt Ryan Compare With Other Companies In The Industry?
Our data indicates that Murray Cod Australia Limited has a market capitalization of AU$115m, and total annual CEO compensation was reported as AU$1.2m for the year to June 2023. We note that's an increase of 25% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$380k.
In comparison with other companies in the Australian Food industry with market capitalizations under AU$305m, the reported median total CEO compensation was AU$419k. Accordingly, our analysis reveals that Murray Cod Australia Limited pays Matt Ryan north of the industry median. Moreover, Matt Ryan also holds AU$16m worth of Murray Cod Australia stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$380k | AU$200k | 32% |
Other | AU$791k | AU$733k | 68% |
Total Compensation | AU$1.2m | AU$933k | 100% |
On an industry level, roughly 71% of total compensation represents salary and 29% is other remuneration. In Murray Cod Australia's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Murray Cod Australia Limited's Growth
Murray Cod Australia Limited has reduced its earnings per share by 74% a year over the last three years. It saw its revenue drop 13% over the last year.
The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Murray Cod Australia Limited Been A Good Investment?
With a three year total loss of 26% for the shareholders, Murray Cod Australia Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 2 which shouldn't be ignored) in Murray Cod Australia we think you should know about.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
