Yahoo Finance What Did Magellan Aerospace Corporation's (TSE:MAL) CEO Take Home Last Year?
Phil Underwood has been the CEO of Magellan Aerospace Corporation (TSE:MAL) since 2015. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Magellan Aerospace
How Does Phil Underwood's Compensation Compare With Similar Sized Companies?
Our data indicates that Magellan Aerospace Corporation is worth CA$899m, and total annual CEO compensation is CA$811k. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$452k. We examined companies with market caps from CA$533m to CA$2.1b, and discovered that the median CEO total compensation of that group was CA$2.1m.
A first glance this seems like a real positive for shareholders, since Phil Underwood is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Magellan Aerospace has changed over time.
Is Magellan Aerospace Corporation Growing?
On average over the last three years, Magellan Aerospace Corporation has shrunk earnings per share by 1.3% each year (measured with a line of best fit). It achieved revenue growth of 7.8% over the last year.
In the last three years the company has failed to grow earnings per share. 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Magellan Aerospace Corporation Been A Good Investment?
Given the total loss of 3.0% over three years, many shareholders in Magellan Aerospace Corporation 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...
It appears that Magellan Aerospace Corporation remunerates its CEO below most similar sized companies.
Shareholders should note that compensation for Phil Underwood is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. Considering all these factors, we'd stop short of saying the CEO pay is too high, but we don't think shareholders would want to see a pay rise before business performance improves. Whatever your view on compensation, you might want to check if insiders are buying or selling Magellan Aerospace shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
