Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2012 Rene Sugo was appointed CEO of MNF Group Limited (ASX:MNF). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Rene Sugo’s Compensation Compare With Similar Sized Companies?
Our data indicates that MNF Group Limited is worth AU$335m, and total annual CEO compensation is AU$684k. (This number is for the twelve months until 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$517k. We looked at a group of companies with market capitalizations from AU$140m to AU$561m, and the median CEO compensation was AU$745k.
That means Rene Sugo receives fairly typical remuneration for the CEO of a company that size. 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 MNF Group, below.
Is MNF Group Limited Growing?
Over the last three years MNF Group Limited has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). Its revenue is up 15% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has MNF Group Limited Been A Good Investment?
Most shareholders would probably be pleased with MNF Group Limited for providing a total return of 41% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Rene Sugo is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying MNF Group shares with their own money (free access).
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
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.