In 2014 Alex Teoh was appointed CEO of Mint Payments Limited (ASX:MNW). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Mint Payments
How Does Alex Teoh's Compensation Compare With Similar Sized Companies?
According to our data, Mint Payments Limited has a market capitalization of AU$20m, and pays its CEO total annual compensation worth AU$234k. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$214k. We examined a group of similar sized companies, with market capitalizations of below AU$278m. The median CEO total compensation in that group is AU$355k.
Most shareholders would consider it a positive that Alex Teoh takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Mint Payments has changed from year to year.
Is Mint Payments Limited Growing?
On average over the last three years, Mint Payments Limited has grown earnings per share (EPS) by 23% each year (using a line of best fit). In the last year, its revenue is down -35%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Mint Payments Limited Been A Good Investment?
Since shareholders would have lost about 76% over three years, some Mint Payments Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It looks like Mint Payments Limited pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. So while we would not say that Alex Teoh is generously paid, it would be good to see an improvement in business performance before too an increase in pay.