Mark Fortunatow is the CEO of MGM Wireless Limited (ASX:MWR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for MGM Wireless
How Does Mark Fortunatow's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that MGM Wireless Limited has a market cap of AU$28m, and reported total annual CEO compensation of AU$900k for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$450k. We took a group of companies with market capitalizations below AU$298m, and calculated the median CEO total compensation to be AU$378k.
As you can see, Mark Fortunatow is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean MGM Wireless Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at MGM Wireless, below.
Is MGM Wireless Limited Growing?
Over the last three years MGM Wireless Limited has shrunk its earnings per share by an average of 106% per year (measured with a line of best fit). In the last year, its revenue is up 160%.
The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has MGM Wireless Limited Been A Good Investment?
Most shareholders would probably be pleased with MGM Wireless Limited for providing a total return of 206% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We examined the amount MGM Wireless Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.