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The CEO of MGM Wireless Limited (ASX:MWR) is Mark Fortunatow. 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. 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.
How Does Mark Fortunatow’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that MGM Wireless Limited has a market cap of AU$50m, and is paying total annual CEO compensation of AU$606k. (This figure is for the year to June 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$417k. We examined a group of similar sized companies, with market capitalizations of below AU$285m. The median CEO total compensation in that group is AU$354k.
Thus we can conclude that Mark Fortunatow receives more in total compensation than the median of a group of companies in the same market, and of similar size to MGM Wireless Limited. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at MGM Wireless, below.
Is MGM Wireless Limited Growing?
MGM Wireless Limited has reduced its earnings per share by an average of 122% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 104% over the last year.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has MGM Wireless Limited Been A Good Investment?
I think that the total shareholder return of 401%, over three years, would leave most MGM Wireless Limited shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
We compared total CEO remuneration at MGM Wireless Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying MGM Wireless shares with their own money (free access).
If you want to buy a stock that is better than MGM Wireless, this free list of high return, low debt companies is a great place to look.
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 email@example.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.