Yahoo Finance Myer Holdings Limited's (ASX:MYR) CEO Compensation Is Looking A Bit Stretched At The Moment
CEO John King has done a decent job of delivering relatively good performance at Myer Holdings Limited (ASX:MYR) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 04 November 2021. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for Myer Holdings
How Does Total Compensation For John King Compare With Other Companies In The Industry?
At the time of writing, our data shows that Myer Holdings Limited has a market capitalization of AU$452m, and reported total annual CEO compensation of AU$2.4m for the year to July 2021. Notably, that's an increase of 53% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$1.2m.
On examining similar-sized companies in the industry with market capitalizations between AU$265m and AU$1.1b, we discovered that the median CEO total compensation of that group was AU$1.8m. Accordingly, our analysis reveals that Myer Holdings Limited pays John King north of the industry median. What's more, John King holds AU$2.0m worth of shares in the company in their own name.
Component | 2021 | 2020 | Proportion (2021) |
Salary | AU$1.2m | AU$1.1m | 49% |
Other | AU$1.2m | AU$533k | 51% |
Total Compensation | AU$2.4m | AU$1.6m | 100% |
On an industry level, roughly 49% of total compensation represents salary and 51% is other remuneration. Myer Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Myer Holdings Limited's Growth
Myer Holdings Limited has seen its earnings per share (EPS) increase by 44% a year over the past three years. It achieved revenue growth of 4.5% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Myer Holdings Limited Been A Good Investment?
Myer Holdings Limited has generated a total shareholder return of 15% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Myer Holdings that investors should be aware of in a dynamic business environment.
Switching gears from Myer Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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