Yahoo Finance Is Mirvac Group's (ASX:MGR) CEO Pay Fair?
Susan Lloyd-Hurwitz has been the CEO of Mirvac Group (ASX:MGR) since 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Mirvac Group
How Does Susan Lloyd-Hurwitz's Compensation Compare With Similar Sized Companies?
Our data indicates that Mirvac Group is worth AU$13b, and total annual CEO compensation is AU$5.1m. (This is based on the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$1.5m. When we examined a selection of companies with market caps ranging from AU$5.7b to AU$17b, we found the median CEO total compensation was AU$4.1m.
So Susan Lloyd-Hurwitz receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Mirvac Group has changed over time.
Is Mirvac Group Growing?
Over the last three years Mirvac Group has grown its earnings per share (EPS) by an average of 9.3% per year (using a line of best fit). In the last year, its revenue is up 29%.
It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. You might want to check this free visual report on analyst forecasts for future earnings.
Has Mirvac Group Been A Good Investment?
Most shareholders would probably be pleased with Mirvac Group for providing a total return of 66% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Remuneration for Susan Lloyd-Hurwitz is close enough to the median pay for a CEO of a similar sized company .
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So all things considered I'd venture that the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mirvac Group (free visualization of insider trades).
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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
