David Tudehope became the CEO of Macquarie Telecom Group Limited (ASX:MAQ) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Macquarie Telecom Group

How Does David Tudehope's Compensation Compare With Similar Sized Companies?

Our data indicates that Macquarie Telecom Group Limited is worth AU$541m, and total annual CEO compensation was reported as AU$1.2m for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$548k. We looked at a group of companies with market capitalizations from AU$315m to AU$1.3b, and the median CEO total compensation was AU$1.2m.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Macquarie Telecom Group stands. On an industry level, roughly 64% of total compensation represents salary and 36% is other remuneration. Non-salary compensation represents a greater slice of the remuneration pie for Macquarie Telecom Group, in sharp contrast to the overall sector.

That means David Tudehope receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see a visual representation of the CEO compensation at Macquarie Telecom Group, below.

Is Macquarie Telecom Group Limited Growing?

On average over the last three years, Macquarie Telecom Group Limited has seen earnings per share (EPS) move in a favourable direction by 9.6% each year (using a line of best fit). Its revenue is up 7.4% over last year.

I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. You might want to check this free visual report on analyst forecasts for future earnings.

Has Macquarie Telecom Group Limited Been A Good Investment?

Boasting a total shareholder return of 108% over three years, Macquarie Telecom Group Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.