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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Contango Asset Management.
Check out our latest analysis for Contango Asset Management
How Does Total Compensation For Marty Switzer Compare With Other Companies In The Industry?
According to our data, Contango Asset Management Limited has a market capitalization of AU$20m, and paid its CEO total annual compensation worth AU$448k over the year to June 2020. That's a slightly lower by 3.2% over the previous year. In particular, the salary of AU$412.5k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below AU$274m, we found that the median total CEO compensation was AU$373k. This suggests that Contango Asset Management remunerates its CEO largely in line with the industry average. What's more, Marty Switzer holds AU$356k worth of shares in the company in their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$412k | AU$440k | 92% |
| Other | AU$35k | AU$22k | 8% |
| Total Compensation | AU$448k | AU$462k | 100% |
Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. According to our research, Contango Asset Management has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Contango Asset Management Limited's Growth Numbers
Contango Asset Management Limited's earnings per share (EPS) grew 68% per year over the last three years. Its revenue is up 58% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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?
With a three year total loss of 60% for the shareholders, Contango Asset Management Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.