In 2015 Grant Blackley was appointed CEO of Southern Cross Media Group Limited (ASX:SXL). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Grant Blackley's Compensation Compare With Similar Sized Companies?
According to our data, Southern Cross Media Group Limited has a market capitalization of AU$915m, and paid its CEO total annual compensation worth AU$2.2m over the year to June 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$1.1m. We examined companies with market caps from AU$592m to AU$2.4b, and discovered that the median CEO total compensation of that group was AU$1.5m.
Thus we can conclude that Grant Blackley receives more in total compensation than the median of a group of companies in the same market, and of similar size to Southern Cross Media Group Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Southern Cross Media Group has changed over time.
Is Southern Cross Media Group Limited Growing?
Over the last three years Southern Cross Media Group Limited has shrunk its earnings per share by an average of 95% per year (measured with a line of best fit). Revenue was pretty flat on last year.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Southern Cross Media Group Limited Been A Good Investment?
Given the total loss of 1.9% over three years, many shareholders in Southern Cross Media Group Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Southern Cross Media Group Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Just as bad, share price gains for investors have failed to materialize, over the same period. In our opinion the CEO might be paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Southern Cross Media Group.
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.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.