How Much Is Mirvac Group's (ASX:MGR) CEO Getting Paid?

Susan Lloyd-Hurwitz has been the CEO of Mirvac Group (ASX:MGR) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Mirvac Group.

Note: The company does not report funds from operations, and as a result, we have used earnings per share in our analysis.

View our latest analysis for Mirvac Group

How Does Total Compensation For Susan Lloyd-Hurwitz Compare With Other Companies In The Industry?

According to our data, Mirvac Group has a market capitalization of AU$9.4b, and paid its CEO total annual compensation worth AU$2.4m over the year to June 2020. That's a notable decrease of 50% on last year. We note that the salary portion, which stands at AU$1.40m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between AU$5.2b and AU$16b had a median total CEO compensation of AU$3.8m. That is to say, Susan Lloyd-Hurwitz is paid under the industry median. Moreover, Susan Lloyd-Hurwitz also holds AU$12m worth of Mirvac Group 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$1.4m	AU$1.5m	59%
Other	AU$995k	AU$3.3m	41%
Total Compensation	AU$2.4m	AU$4.8m	100%

Speaking on an industry level, nearly 54% of total compensation represents salary, while the remainder of 46% is other remuneration. Our data reveals that Mirvac Group allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Mirvac Group's Growth Numbers

Over the last three years, Mirvac Group has shrunk its earnings per share by 23% per year. Revenue was pretty flat on last year.

The decline in EPS is a bit concerning. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Mirvac Group Been A Good Investment?

Mirvac Group 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.

To Conclude...

As we noted earlier, Mirvac Group pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Shareholder returns have been uninspiring, but EPS growth has arguably been worse, over the last three years. It's tough for us to say that Susan is earning a high compensation, but any bump in pay is unlikely at this stage since shareholders will likely hold off support until performance improves.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 1 which is a bit concerning) in Mirvac Group we think you should know about.

Important note: Mirvac Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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