Rob Velletri became the CEO of Monadelphous Group Limited (ASX:MND) in 2003. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Rob Velletri's Compensation Compare With Similar Sized Companies?
According to our data, Monadelphous Group Limited has a market capitalization of AU$1.6b, and pays its CEO total annual compensation worth AU$1.1m. (This figure is for the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$914k. We examined companies with market caps from AU$591m to AU$2.4b, and discovered that the median CEO total compensation of that group was AU$1.4m.
That means Rob Velletri receives fairly typical remuneration for the CEO of a company that size. 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.
The graphic below shows how CEO compensation at Monadelphous Group has changed from year to year.
Is Monadelphous Group Limited Growing?
On average over the last three years, Monadelphous Group Limited has shrunk earnings per share by 1.3% each year (measured with a line of best fit). It saw its revenue drop -15% over the last year.
The lack of earnings per share growth in the last three years is unimpressive. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Monadelphous Group Limited Been A Good Investment?
Boasting a total shareholder return of 109% over three years, Monadelphous Group Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Rob Velletri is paid around the same as most CEOs of similar size companies.
We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Monadelphous Group (free visualization of insider trades).
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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