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In 2014 Fraser Whineray was appointed CEO of Mercury NZ Limited (NZSE:MCY). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Mercury NZ
How Does Fraser Whineray's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Mercury NZ Limited has a market cap of NZ$6.3b, and is paying total annual CEO compensation of NZ$1.8m. (This figure is for the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at NZ$1.1m. We examined companies with market caps from NZ$3.0b to NZ$9.5b, and discovered that the median CEO total compensation of that group was NZ$2.0m.
So Fraser Whineray 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 Mercury NZ, below.
Is Mercury NZ Limited Growing?
Mercury NZ Limited has increased its earnings per share (EPS) by an average of 16% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 9.7%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has Mercury NZ Limited Been A Good Investment?
Boasting a total shareholder return of 88% over three years, Mercury NZ Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Fraser Whineray is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Mercury NZ insiders are buying or selling shares.