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Neil Sheather has been the CEO of Mejority Capital Limited (ASX:MJC) since 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Mejority Capital
How Does Neil Sheather's Compensation Compare With Similar Sized Companies?
According to our data, Mejority Capital Limited has a market capitalization of AU$2.9m, and pays its CEO total annual compensation worth AU$299k. (This number is for the twelve months until June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$228k. We looked at a group of companies with market capitalizations under AU$288m, and the median CEO total compensation was AU$358k.
That means Neil Sheather receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Mejority Capital has changed over time.
Is Mejority Capital Limited Growing?
Over the last three years Mejority Capital Limited has grown its earnings per share (EPS) by an average of 47% per year (using a line of best fit). Its revenue is down -1.1% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Mejority Capital Limited Been A Good Investment?
Given the total loss of 40% over three years, many shareholders in Mejority Capital Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Neil Sheather is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Shareholders may want to check for free if Mejority Capital insiders are buying or selling shares.