How Much Did Shopping Centres Australasia Property Group's (ASX:SCP) CEO Pocket Last Year?

Anthony Michael Mellowes has been the CEO of Shopping Centres Australasia Property Group (ASX:SCP) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the funds from operations and shareholder returns of the company.

Check out our latest analysis for Shopping Centres Australasia Property Group

Comparing Shopping Centres Australasia Property Group's CEO Compensation With the industry

At the time of writing, our data shows that Shopping Centres Australasia Property Group has a market capitalization of AU$2.7b, and reported total annual CEO compensation of AU$1.5m for the year to June 2020. Notably, that's a decrease of 26% over the year before. In particular, the salary of AU$926.3k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations ranging from AU$1.3b to AU$4.2b, the reported median CEO total compensation was AU$1.8m. From this we gather that Anthony Michael Mellowes is paid around the median for CEOs in the industry. What's more, Anthony Michael Mellowes holds AU$3.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 51% of total compensation represents salary, while the remainder of 49% is other remuneration. Shopping Centres Australasia Property Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Shopping Centres Australasia Property Group's Growth

Over the past three years, Shopping Centres Australasia Property Group has seen its funds from operations (FFO) grow by 9.1% per year. Its revenue is up 7.8% over the last year.

We're not particularly impressed by the revenue growth, but the modest improvement in FFO is good. So there are some positives here, but not enough to earn high praise. 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 Shopping Centres Australasia Property Group Been A Good Investment?

Shopping Centres Australasia Property Group has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As we noted earlier, Shopping Centres Australasia Property Group pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, FFO and shareholder returns have been stable over the last three years, but have not grown substantially. So, although the CEO compensation seems reasonable, shareholders might want to see some further progress before they agree that Anthony Michael should get a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for Shopping Centres Australasia Property Group (1 is potentially serious!) that you should be aware of before investing here.

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.

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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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