Is MyState Limited’s (ASX:MYS) CEO Paid Enough Relative To Peers?

In 2014 Melos Sulicich was appointed CEO of MyState Limited (ASX:MYS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

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View our latest analysis for MyState

How Does Melos Sulicich’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that MyState Limited has a market cap of AU$389m, and is paying total annual CEO compensation of AU$791k. (This figure is for the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$550k. We looked at a group of companies with market capitalizations from AU$145m to AU$582m, and the median CEO total compensation was AU$770k.

That means Melos Sulicich receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at MyState has changed over time.

ASX:MYS CEO Compensation, May 23rd 2019
ASX:MYS CEO Compensation, May 23rd 2019

Is MyState Limited Growing?

MyState Limited saw earnings per share stay pretty flat over the last three years, albeit with a slight decrease, according to the line of best fit. The trailing twelve months of revenue was pretty much the same as the prior period.

In the last three years the company has failed to grow earnings per s. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has MyState Limited Been A Good Investment?

MyState Limited has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary…

Remuneration for Melos Sulicich 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 and we don’t think the total returns are amazing. We’re not saying the CEO pay is too generous, but it’s probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. Whatever your view on compensation, you might want to check if insiders are buying or selling MyState shares (free trial).

Important note: MyState may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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.