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Is Shopping Centres Australasia Property Group's (ASX:SCP) CEO Paid Enough Relative To Peers?

Simply Wall St

Anthony Michael Mellowes became the CEO of Shopping Centres Australasia Property Group (ASX:SCP) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Shopping Centres Australasia Property Group

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$2.2b, and pays its CEO total annual compensation worth AU$1.8m. (This is based on the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$881k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$1.4b to AU$4.6b. The median total CEO compensation was AU$2.4m.

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.

The graphic below shows how CEO compensation at Shopping Centres Australasia Property Group has changed from year to year.

ASX:SCP CEO Compensation, July 30th 2019

Is Shopping Centres Australasia Property Group Growing?

Shopping Centres Australasia Property Group has reduced its earnings per share by an average of 5.5% a year, over the last three years (measured with a line of best fit). Its revenue is up 11% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has Shopping Centres Australasia Property Group Been A Good Investment?

With a total shareholder return of 21% over three years, Shopping Centres Australasia Property Group shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Anthony Michael Mellowes is paid around the same as most CEOs of similar size companies.

We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We're not saying the CEO pay is too generous, but we'd venture the company should look to improve its business metrics (and share price) before paying any more. So you may want to check if insiders are buying Shopping Centres Australasia Property Group shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.