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Is Shopping Centres Australasia Property Group (ASX:SCP) Overpaying Its CEO?

Simply Wall St

Anthony Michael Mellowes has been the CEO of Shopping Centres Australasia Property Group (ASX:SCP) since 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Shopping Centres Australasia Property Group

How Does Anthony Michael Mellowes's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Shopping Centres Australasia Property Group has a market cap of AU$2.6b, and reported total annual CEO compensation of AU$2.0m for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$885k. We looked at a group of companies with market capitalizations from AU$1.4b to AU$4.6b, and the median CEO total compensation was AU$2.1m.

That means Anthony Michael Mellowes receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Shopping Centres Australasia Property Group has changed over time.

ASX:SCP CEO Compensation, January 7th 2020

Is Shopping Centres Australasia Property Group Growing?

Shopping Centres Australasia Property Group has reduced its earnings per share by an average of 26% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 25%.

Unfortunately, earnings per share have trended lower over the last three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.

Has Shopping Centres Australasia Property Group Been A Good Investment?

Boasting a total shareholder return of 48% over three years, Shopping Centres Australasia Property Group 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.

In Summary...

Remuneration for Anthony Michael Mellowes is close enough to the median pay for a CEO of a similar sized company .

We feel that earnings per share have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for similar sized companies. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Shopping Centres Australasia Property Group.

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

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.

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