In 2014 David Tudehope was appointed CEO of Macquarie Telecom Group Limited (ASX:MAQ). 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 process should give us an idea about how appropriately the CEO is paid.
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Check out our latest analysis for Macquarie Telecom Group
How Does David Tudehope’s Compensation Compare With Similar Sized Companies?
Our data indicates that Macquarie Telecom Group Limited is worth AU$426m, and total annual CEO compensation is AU$872k. (This number is for the twelve months until June 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$527k. We examined companies with market caps from AU$145m to AU$578m, and discovered that the median CEO total compensation of that group was AU$762k.
So David Tudehope is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Macquarie Telecom Group has changed over time.
Is Macquarie Telecom Group Limited Growing?
Macquarie Telecom Group Limited has increased its earnings per share (EPS) by an average of 57% a year, over the last three years (using a line of best fit). It achieved revenue growth of 5.1% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Macquarie Telecom Group Limited Been A Good Investment?
I think that the total shareholder return of 87%, over three years, would leave most Macquarie Telecom Group Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Remuneration for David Tudehope is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Macquarie Telecom Group shares with their own money (free access).
If you want to buy a stock that is better than Macquarie Telecom Group, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.