Grant Blackley became the CEO of Southern Cross Media Group Limited (ASX:SXL) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Grant Blackley’s Compensation Compare With Similar Sized Companies?
According to our data, Southern Cross Media Group Limited has a market capitalization of AU$757m, and pays its CEO total annual compensation worth AU$2.2m. (This figure is for the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$1.1m. We examined companies with market caps from AU$282m to AU$1.1b, and discovered that the median CEO compensation of that group was AU$1.2m.
Thus we can conclude that Grant Blackley receives more in total compensation than the median of a group of companies in the same market, and of similar size to Southern Cross Media Group Limited. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Southern Cross Media Group, below.
Is Southern Cross Media Group Limited Growing?
On average over the last three years, Southern Cross Media Group Limited has grown earnings per share (EPS) by 98% each year (using a line of best fit). It saw its revenue drop -5.0% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Southern Cross Media Group Limited Been A Good Investment?
Southern Cross Media Group Limited has generated a total shareholder return of 14% over three years, so most shareholders would be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared total CEO remuneration at Southern Cross Media Group Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also think investors are doing ok, over the same time period. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. Shareholders may want to check for free if Southern Cross Media Group insiders are buying or selling shares.
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 firstname.lastname@example.org.