A Look At Macro Enterprises' (CVE:MCR) CEO Remuneration

Frank Miles became the CEO of Macro Enterprises Inc. (CVE:MCR) in 2008, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Macro Enterprises.

Check out our latest analysis for Macro Enterprises

Comparing Macro Enterprises Inc.'s CEO Compensation With the industry

According to our data, Macro Enterprises Inc. has a market capitalization of CA$73m, and paid its CEO total annual compensation worth CA$787k over the year to December 2019. We note that's a decrease of 8.4% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$337k.

In comparison with other companies in the industry with market capitalizations under CA$262m, the reported median total CEO compensation was CA$842k. This suggests that Macro Enterprises remunerates its CEO largely in line with the industry average. Moreover, Frank Miles also holds CA$21m worth of Macro Enterprises stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 32% of total compensation represents salary and 68% is other remuneration. It's interesting to note that Macro Enterprises pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Macro Enterprises Inc.'s Growth

Over the past three years, Macro Enterprises Inc. has seen its earnings per share (EPS) grow by 86% per year. It saw its revenue drop 28% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Macro Enterprises Inc. Been A Good Investment?

Given the total shareholder loss of 2.9% over three years, many shareholders in Macro Enterprises Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, Frank is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, EPS growth is positive over the same time frame. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for Macro Enterprises that investors should look into moving forward.

Switching gears from Macro Enterprises, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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