We Discuss Why Malta Properties Company p.l.c.'s (MTSE:MPC) CEO Compensation May Be Closely Reviewed

Key Insights

• Malta Properties to hold its Annual General Meeting on 28th of May
• CEO Mohsin Majid's total compensation includes salary of €200.4k
• Total compensation is similar to the industry average
• Over the past three years, Malta Properties' EPS fell by 1.3% and over the past three years, the total loss to shareholders 29%

Our free stock report includes 4 warning signs investors should be aware of before investing in Malta Properties. Read for free now.

Shareholders will probably not be too impressed with the underwhelming results at Malta Properties Company p.l.c. (MTSE:MPC) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 28th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Malta Properties

Comparing Malta Properties Company p.l.c.'s CEO Compensation With The Industry

At the time of writing, our data shows that Malta Properties Company p.l.c. has a market capitalization of €32m, and reported total annual CEO compensation of €265k for the year to December 2024. That's a notable increase of 9.0% on last year. In particular, the salary of €200.4k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Europe Real Estate industry with market capitalizations below €176m, we found that the median total CEO compensation was €264k. This suggests that Malta Properties remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	€200k	€182k	76%
Other	€64k	€61k	24%
Total Compensation	€265k	€243k	100%

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. There isn't a significant difference between Malta Properties and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Malta Properties Company p.l.c.'s Growth

Over the last three years, Malta Properties Company p.l.c. has shrunk its earnings per share by 1.3% per year. It achieved revenue growth of 13% over the last year.

The lack of EPS growth is certainly uninspiring. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Malta Properties Company p.l.c. Been A Good Investment?

With a three year total loss of 29% for the shareholders, Malta Properties Company p.l.c. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 2 which can't be ignored) in Malta Properties we think you should know about.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.