Yahoo Finance How Much Is Contango Asset Management's (ASX:CGA) CEO Getting Paid?
Marty Switzer has been the CEO of Contango Asset Management Limited (ASX:CGA) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Contango Asset Management
How Does Total Compensation For Marty Switzer Compare With Other Companies In The Industry?
Our data indicates that Contango Asset Management Limited has a market capitalization of AU$40m, and total annual CEO compensation was reported as AU$448k for the year to June 2020. We note that's a small decrease of 3.2% on last year. In particular, the salary of AU$412.5k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below AU$259m, reported a median total CEO compensation of AU$443k. From this we gather that Marty Switzer is paid around the median for CEOs in the industry. Furthermore, Marty Switzer directly owns AU$719k worth of shares in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | AU$412k | AU$440k | 92% |
Other | AU$35k | AU$22k | 8% |
Total Compensation | AU$448k | AU$462k | 100% |
Talking in terms of the industry, salary represented approximately 70% of total compensation out of all the companies we analyzed, while other remuneration made up 30% of the pie. According to our research, Contango Asset Management has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Contango Asset Management Limited's Growth
Contango Asset Management Limited has seen its earnings per share (EPS) increase by 27% a year over the past three years. In the last year, its revenue is up 42%.
Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Contango Asset Management Limited Been A Good Investment?
Boasting a total shareholder return of 130% over three years, Contango Asset Management Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
As previously discussed, Marty is compensated close to the median for companies of its size, and which belong to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Indeed, many might consider that Marty is compensated rather modestly, given the solid company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Contango Asset Management that investors should think about before committing capital to this stock.
Important note: Contango Asset Management is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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