In This Article:
Skander Malcolm became the CEO of OFX Group Limited (ASX:OFX) in 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for OFX Group
How Does Skander Malcolm's Compensation Compare With Similar Sized Companies?
According to our data, OFX Group Limited has a market capitalization of AU$307m, and paid its CEO total annual compensation worth AU$788k over the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$643k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$157m to AU$629m. The median total CEO compensation was AU$852k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 56% of total compensation represents salary, while the remainder of 44% is other remuneration. According to our research, OFX Group has allocated a higher percentage of pay to salary in comparison to the broader sector.
So Skander Malcolm is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see a visual representation of the CEO compensation at OFX Group, below.
Is OFX Group Limited Growing?
On average over the last three years, OFX Group Limited has shrunk earnings per share by 5.0% each year (measured with a line of best fit). Its revenue is up 2.3% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has OFX Group Limited Been A Good Investment?
Since shareholders would have lost about 7.3% over three years, some OFX Group Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.