Yahoo Finance A Quick Analysis On Madison Pacific Properties' (TSE:MPC) CEO Salary
This article will reflect on the compensation paid to Marvin Haasen who has served as CEO of Madison Pacific Properties Inc. (TSE:MPC) since 2012. This analysis will also assess whether Madison Pacific Properties pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Madison Pacific Properties
Comparing Madison Pacific Properties Inc.'s CEO Compensation With the industry
According to our data, Madison Pacific Properties Inc. has a market capitalization of CA$210m, and paid its CEO total annual compensation worth CA$392k over the year to August 2020. This means that the compensation hasn't changed much from last year. In particular, the salary of CA$234.2k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar companies from the same industry with market caps ranging from CA$128m to CA$513m, we found that the median CEO total compensation was CA$992k. In other words, Madison Pacific Properties pays its CEO lower than the industry median.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$234k | CA$245k | 60% |
Other | CA$158k | CA$139k | 40% |
Total Compensation | CA$392k | CA$384k | 100% |
Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% is other remuneration. It's interesting to note that Madison Pacific Properties pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Madison Pacific Properties Inc.'s Growth Numbers
Madison Pacific Properties Inc. has reduced its earnings per share by 21% a year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.
Overall this is not a very positive result for shareholders. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Madison Pacific Properties Inc. Been A Good Investment?
Madison Pacific Properties Inc. has generated a total shareholder return of 17% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
As previously discussed, Marvin is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Over the last three years, shareholder returns have been unexciting, and EPS growth has fared even worse. We can't categorize CEO compensation as high, but shareholders might object to a raise at this stage, considering overall poor performance.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for Madison Pacific Properties (of which 2 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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