Mark Steinert has been the CEO of Stockland (ASX:SGP) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Mark Steinert’s Compensation Compare With Similar Sized Companies?
According to our data, Stockland has a market capitalization of AU$8.7b, and pays its CEO total annual compensation worth AU$4.4m. That’s below the compensation, last year. When we examined a selection of companies with market caps ranging from AU$5.5b to AU$17b, we found the median CEO compensation was AU$4.2m.
So Mark Steinert is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Stockland, below.
Is Stockland Growing?
Over the last three years Stockland has grown its earnings per share (EPS) by an average of 4.4% per year. Its revenue is up 1.1% over last year.
I would argue that the improvement in revenue isn’t particularly impressive, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Stockland Been A Good Investment?
Stockland has served shareholders reasonably well, with a total return of 13% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Mark Steinert is paid around what is normal the leaders of comparable size companies.
The company isn’t showing particularly great growth, and shareholder turns haven’t been particularly inspiring in the last few years. While there is room for improvement, we haven’t seen evidence to suggest the pay is too generous. Shareholders may want to check for free if Stockland insiders are buying or selling shares.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.