Yahoo Finance Is Musgrave Minerals Limited's (ASX:MGV) CEO Salary Justified?
The CEO of Musgrave Minerals Limited (ASX:MGV) is Rob Waugh. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Musgrave Minerals
How Does Rob Waugh's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Musgrave Minerals Limited has a market cap of AU$26m, and is paying total annual CEO compensation of AU$360k. (This is based on the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$269k. We took a group of companies with market capitalizations below AU$278m, and calculated the median CEO total compensation to be AU$355k.
That means Rob Waugh receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Musgrave Minerals has changed over time.
Is Musgrave Minerals Limited Growing?
Musgrave Minerals Limited has increased its earnings per share (EPS) by an average of 68% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -37%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Musgrave Minerals Limited Been A Good Investment?
Boasting a total shareholder return of 158% over three years, Musgrave Minerals 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...
Rob Waugh is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Musgrave Minerals insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 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.
