Is Shopping Centres Australasia Property Group (ASX:SCP) Overpaying Its CEO?
In 2012 Anthony Michael Mellowes was appointed CEO of Shopping Centres Australasia Property Group (ASX:SCP). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Shopping Centres Australasia Property Group
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How Does Anthony Michael Mellowes’s Compensation Compare With Similar Sized Companies?
According to our data, Shopping Centres Australasia Property Group has a market capitalization of AU$2.3b, and pays its CEO total annual compensation worth AU$1.8m. (This number is for the twelve months until 2016). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$837k. We examined companies with market caps from AU$1.4b to AU$4.5b, and discovered that the median CEO compensation of that group was AU$2.5m.
So Anthony Michael Mellowes is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Shopping Centres Australasia Property Group, below.
Is Shopping Centres Australasia Property Group Growing?
Shopping Centres Australasia Property Group has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). It achieved revenue growth of 5.8% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
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?
Most shareholders would probably be pleased with Shopping Centres Australasia Property Group for providing a total return of 47% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
In Summary…
Anthony Michael Mellowes is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Shopping Centres Australasia Property Group shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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 editorial-team@simplywallst.com.
