Fraser Whineray became the CEO of Mercury NZ Limited (NZSE:MCY) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Mercury NZ
How Does Fraser Whineray's Compensation Compare With Similar Sized Companies?
According to our data, Mercury NZ Limited has a market capitalization of NZ$6.9b, and paid its CEO total annual compensation worth NZ$2.0m over the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at NZ$1.1m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of NZ$3.0b to NZ$9.6b. The median total CEO compensation was NZ$2.1m.
That means Fraser Whineray 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.
The graphic below shows how CEO compensation at Mercury NZ has changed from year to year.
Is Mercury NZ Limited Growing?
Mercury NZ Limited has increased its earnings per share (EPS) by an average of 20% a year, over the last three years (using a line of best fit). It achieved revenue growth of 11% over the last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Mercury NZ Limited Been A Good Investment?
Most shareholders would probably be pleased with Mercury NZ Limited for providing a total return of 94% 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.
In Summary...
Fraser Whineray is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Mercury NZ insiders are buying or selling shares.
If you want to buy a stock that is better than Mercury NZ, this free list of high return, low debt companies is a great place to look.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.