David Tudehope became the CEO of Macquarie Telecom Group Limited (ASX:MAQ) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Macquarie Telecom Group
How Does David Tudehope's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Macquarie Telecom Group Limited has a market cap of AU$604m, and reported total annual CEO compensation of AU$1.2m for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$548k. We looked at a group of companies with market capitalizations from AU$311m to AU$1.2b, and the median CEO total compensation was AU$1.2m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Macquarie Telecom Group stands. On a sector level, around 64% of total compensation represents salary and 36% is other remuneration. Non-salary compensation represents a greater slice of the remuneration pie for Macquarie Telecom Group, in sharp contrast to the overall sector.
So David Tudehope receives a similar amount to the median CEO pay, amongst 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 a visual representation of the CEO compensation at Macquarie Telecom Group, below.
Is Macquarie Telecom Group Limited Growing?
On average over the last three years, Macquarie Telecom Group Limited has seen earnings per share (EPS) move in a favourable direction by 9.6% each year (using a line of best fit). It achieved revenue growth of 7.4% over the last year.
I'm not particularly impressed by the revenue growth, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.
Has Macquarie Telecom Group Limited Been A Good Investment?
I think that the total shareholder return of 124%, 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...
David Tudehope is paid around the same as most CEOs of similar size companies.
While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. Shifting gears from CEO pay for a second, we've spotted 2 warning signs for Macquarie Telecom Group you should be aware of, and 1 of them shouldn't be ignored.
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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