This article will reflect on the compensation paid to Scott Baldwin who has served as CEO of Money3 Corporation Limited (ASX:MNY) since 2015. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Money3.
View our latest analysis for Money3
Comparing Money3 Corporation Limited's CEO Compensation With the industry
Our data indicates that Money3 Corporation Limited has a market capitalization of AU$525m, and total annual CEO compensation was reported as AU$1.1m for the year to June 2020. Notably, that's a decrease of 23% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$478k.
On comparing similar companies from the same industry with market caps ranging from AU$265m to AU$1.1b, we found that the median CEO total compensation was AU$810k. Hence, we can conclude that Scott Baldwin is remunerated higher than the industry median. Moreover, Scott Baldwin also holds AU$2.0m worth of Money3 stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$478k | AU$487k | 44% |
| Other | AU$603k | AU$917k | 56% |
| Total Compensation | AU$1.1m | AU$1.4m | 100% |
Talking in terms of the industry, salary represented approximately 42% of total compensation out of all the companies we analyzed, while other remuneration made up 58% of the pie. There isn't a significant difference between Money3 and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Money3 Corporation Limited's Growth
Over the last three years, Money3 Corporation Limited has shrunk its earnings per share by 14% per year. Its revenue is up 35% over the last year.
The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Money3 Corporation Limited Been A Good Investment?
Boasting a total shareholder return of 100% over three years, Money3 Corporation 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.
To Conclude...
As we noted earlier, Money3 pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But shareholder returns and revenue growth have been very healthy as we saw before. Sadly, EPS growth did not follow suit, remaining during this time. Considering all the factors, we would have to say CEO pay is fair; however, moving forward, it would be nice to see EPS growth from the company as well.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Money3 (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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About ASX:SVR
Good value slight.
