Yahoo Finance Is Mayne Pharma Group Limited’s (ASX:MYX) CEO Salary Justified?
In 2012 Scott Richards was appointed CEO of Mayne Pharma Group Limited (ASX:MYX). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Mayne Pharma Group
How Does Scott Richards’s Compensation Compare With Similar Sized Companies?
According to our data, Mayne Pharma Group Limited has a market capitalization of AU$1.8b, and pays its CEO total annual compensation worth AU$3m. That’s actually a decrease on the year before. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$1.4b to AU$4.5b. The median total CEO compensation was AU$3m.
So Scott Richards is paid around the average of the companies we looked at. 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.
You can see a visual representation of the CEO compensation at Mayne Pharma Group, below.
Is Mayne Pharma Group Limited Growing?
On average over the last three years, Mayne Pharma Group Limited has shrunk earnings per share by 73% each year. It saw its revenue drop -7.4% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Mayne Pharma Group Limited Been A Good Investment?
Mayne Pharma Group Limited has served shareholders reasonably well, with a total return of 15% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
Remuneration for Scott Richards is close enough to the median pay for a CEO of a similar sized company .
The company isn’t growing earnings per share, and nor have the total returns inspired us. We do not think the CEO pay is a problem, but one might argue that the company should improve returns to shareholders before increasing it. So you may want to check if insiders are buying Mayne Pharma Group Limited shares with their own money (free access).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
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 editorial-team@simplywallst.com.
