Jeff Weber became the CEO of MMA Offshore Limited (ASX:MRM) in 2002. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for MMA Offshore
How Does Jeff Weber’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that MMA Offshore Limited has a market cap of AU$163m, and is paying total annual CEO compensation of AU$907k. That’s actually a decrease on the year before. We looked at a group of companies with market capitalizations under AU$273m, and the median CEO compensation was AU$362k.
It would therefore appear that MMA Offshore Limited pays Jeff Weber more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at MMA Offshore has changed over time.
Is MMA Offshore Limited Growing?
Over the last three years MMA Offshore Limited has shrunk its earnings per share by an average of 12% per year. In the last year, its revenue is down -9.6%.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
It could be important to check this free visual depiction of what analysts expect for the future.
Has MMA Offshore Limited Been A Good Investment?
With a three year total loss of 13%, MMA Offshore Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We compared the total CEO remuneration paid by MMA Offshore Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously!