Yahoo Finance What Can We Make Of MOQ's (ASX:MOQ) CEO Compensation?
Joe D'Addio has been the CEO of MOQ Limited (ASX:MOQ) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether MOQ pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for MOQ
How Does Total Compensation For Joe D'Addio Compare With Other Companies In The Industry?
Our data indicates that MOQ Limited has a market capitalization of AU$30m, and total annual CEO compensation was reported as AU$204k for the year to June 2020. That's a slightly lower by 6.7% over the previous year. In particular, the salary of AU$186.7k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below AU$261m, we found that the median total CEO compensation was AU$334k. This suggests that Joe D'Addio is paid below the industry median. Moreover, Joe D'Addio also holds AU$3.1m worth of MOQ stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | AU$187k | AU$200k | 91% |
Other | AU$18k | AU$19k | 9% |
Total Compensation | AU$204k | AU$219k | 100% |
On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. It's interesting to note that MOQ pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at MOQ Limited's Growth Numbers
Over the last three years, MOQ Limited has shrunk its earnings per share by 94% per year. In the last year, its revenue is down 3.9%.
The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has MOQ Limited Been A Good Investment?
Since shareholders would have lost about 24% over three years, some MOQ Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
As previously discussed, Joe is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. EPS growth has failed to impress us, and the same can be said about shareholder returns. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for MOQ that investors should look into moving forward.
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.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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