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Is Stockland’s (ASX:SGP) CEO Pay Justified?

Mark Steinert became the CEO of Stockland (ASX:SGP) in 2013. 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Stockland

How Does Mark Steinert’s Compensation Compare With Similar Sized Companies?

According to our data, Stockland has a market capitalization of AU$8.8b, and pays its CEO total annual compensation worth AU$4.4m. (This number is for the twelve months until 2018). That’s below the compensation, last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$1.5m. When we examined a selection of companies with market caps ranging from AU$5.6b to AU$17b, we found the median CEO compensation was AU$4.1m.

That means Mark Steinert receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Stockland has changed from year to year.

ASX:SGP CEO Compensation December 13th 18

Is Stockland Growing?

Over the last three years Stockland has grown its earnings per share (EPS) by an average of 4.4% per year. It achieved revenue growth of 1.1% over the last year.

I’m not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Stockland Been A Good Investment?

Stockland has not done too badly by shareholders, with a total return of 8.6%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

Mark Steinert is paid around what is normal the leaders of comparable size companies.

We think many would like to see better growth. While there is room for improvement, we haven’t seen evidence to suggest the pay is too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Stockland (free visualization of insider trades).

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.