Michael Falcone has been the CEO of MMA Capital Management LLC (NASDAQ:MMAC) since 2005. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Michael Falcone’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that MMA Capital Management LLC has a market cap of US$159m, and is paying total annual CEO compensation of US$1.7m. That’s less than last year. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$915k.
It would therefore appear that MMA Capital Management LLC pays Michael Falcone more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at MMA Capital Management has changed over time.
Is MMA Capital Management LLC Growing?
MMA Capital Management LLC has increased its earnings per share (EPS) by an average of 6.8% a year, over the last three years In the last year, its revenue is up 233%.
It’s hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn’t shabby. So while I’d stop short of saying growth is absolutely outstanding, there are definitely some clear positives! We don’t have analyst forecasts, but you might want to assess this free data-rich visualization of earnings, revenue and cash flow.
Has MMA Capital Management LLC Been A Good Investment?
I think that the total shareholder return of 99%, over three years, would leave most MMA Capital Management LLC shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by MMA Capital Management LLC, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
While we generally prefer to see stronger EPS growth, there’s no arguing with the strong returns to shareholders, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.