Yahoo Finance Our Take On NZME Limited's (NZSE:NZM) CEO Salary
Michael Boggs has been the CEO of NZME Limited (NZSE:NZM) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
View our latest analysis for NZME
How Does Michael Boggs's Compensation Compare With Similar Sized Companies?
According to our data, NZME Limited has a market capitalization of NZ$81m, and paid its CEO total annual compensation worth NZ$1.3m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at NZ$856k. We looked at a group of companies with market capitalizations under NZ$297m, and the median CEO total compensation was NZ$398k.
As you can see, Michael Boggs is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean NZME Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at NZME, below.
Is NZME Limited Growing?
On average over the last three years, NZME Limited has grown earnings per share (EPS) by 103% each year (using a line of best fit). It saw its revenue drop 2.3% over the last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has NZME Limited Been A Good Investment?
With a three year total loss of 11%, NZME Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at NZME Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling NZME (free visualization of insider trades).
Important note: NZME may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
