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David Heather became the CEO of Managed Accounts Holdings Limited (ASX:MGP) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Managed Accounts Holdings
How Does David Heather’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Managed Accounts Holdings Limited has a market cap of AU$39m, and is paying total annual CEO compensation of AU$289k. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$233k. We took a group of companies with market capitalizations below AU$282m, and calculated the median CEO compensation to be AU$363k.
So David Heather is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Managed Accounts Holdings, below.
Is Managed Accounts Holdings Limited Growing?
Managed Accounts Holdings Limited has reduced its earnings per share by an average of 84% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 120%.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Managed Accounts Holdings Limited Been A Good Investment?
Since shareholders would have lost about 58% over three years, some Managed Accounts Holdings Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
David Heather is paid around what is normal the leaders of comparable size companies.