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Should You Worry About Maui Land & Pineapple Company, Inc.'s (NYSE:MLP) CEO Pay?

Simply Wall St

Warren Haruki became the CEO of Maui Land & Pineapple Company, Inc. (NYSE:MLP) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Maui Land & Pineapple Company

How Does Warren Haruki's Compensation Compare With Similar Sized Companies?

According to our data, Maui Land & Pineapple Company, Inc. has a market capitalization of US$212m, and paid its CEO total annual compensation worth US$1.5m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$365k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.2m.

So Warren Haruki receives a similar amount to the median CEO pay, amongst 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.

The graphic below shows how CEO compensation at Maui Land & Pineapple Company has changed from year to year.

NYSE:MLP CEO Compensation, September 20th 2019

Is Maui Land & Pineapple Company, Inc. Growing?

Maui Land & Pineapple Company, Inc. has reduced its earnings per share by an average of 83% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 3.8% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Maui Land & Pineapple Company, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Maui Land & Pineapple Company, Inc. for providing a total return of 59% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Remuneration for Warren Haruki 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 doubt many are complaining about the fairly normal CEO pay. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Maui Land & Pineapple Company.

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.