Should You Be Pleased About The CEO Pay At MyState Limited's (ASX:MYS)

Melos Sulicich has been the CEO of MyState Limited (ASX:MYS) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for MyState

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

According to our data, MyState Limited has a market capitalization of AU$414m, and paid its CEO total annual compensation worth AU$754k over the year to June 2019. That's actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at AU$600k. We examined companies with market caps from AU$148m to AU$591m, and discovered that the median CEO total compensation of that group was AU$711k.

That means Melos Sulicich 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 might want to check this free visual report on analyst forecasts for future earnings.

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

Is MyState Limited Growing?

On average over the last three years, MyState Limited has grown earnings per share (EPS) by 1.3% each year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.

I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing.

Has MyState Limited Been A Good Investment?

Boasting a total shareholder return of 35% over three years, MyState Limited 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 Melos Sulicich is close enough to the median pay for a CEO of a similar sized company .

While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. So you may want to check if insiders are buying MyState 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.