Yahoo Finance Is Macerich Company (NYSE:MAC) Excessively Paying Its CEO?
In 1993 Art Coppola was appointed CEO of Macerich Company (NYSE:MAC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
View our latest analysis for Macerich
How Does Art Coppola’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Macerich Company has a market cap of US$7.7b, and is paying total annual CEO compensation of US$13m. That’s below the compensation, last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12.0b. The median total CEO compensation was US$7m.
Thus we can conclude that Art Coppola receives more in total compensation than the median of a group of companies in the same market, and of similar size to Macerich Company. However, this doesn’t necessarily mean the pay is too high. 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, below, how CEO compensation at Macerich has changed over time.
Is Macerich Company Growing?
Over the last three years Macerich Company has shrunk its earnings per share by an average of 86% per year. Its revenue is down -1.5% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Macerich Company Been A Good Investment?
Since shareholders would have lost about 25% over three years, some Macerich Company shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We examined the amount Macerich Company pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Macerich Company.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
