Advertisement
UK markets closed
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • FTSE 250

    19,884.73
    +74.07 (+0.37%)
     
  • AIM

    743.26
    +1.15 (+0.15%)
     
  • GBP/EUR

    1.1691
    -0.0002 (-0.02%)
     
  • GBP/USD

    1.2615
    -0.0007 (-0.05%)
     
  • Bitcoin GBP

    55,614.15
    -413.04 (-0.74%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • CAC 40

    8,205.81
    +1.00 (+0.01%)
     

Shareholders May Not Be So Generous With The Market Herald Limited's (ASX:TMH) CEO Compensation And Here's Why

Performance at The Market Herald Limited (ASX:TMH) has been reasonably good and CEO Jag Sanger has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 15 November 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Market Herald

Comparing The Market Herald Limited's CEO Compensation With the industry

At the time of writing, our data shows that The Market Herald Limited has a market capitalization of AU$132m, and reported total annual CEO compensation of AU$1.2m for the year to June 2021. That's a notable increase of 11% on last year. We note that the salary portion, which stands at AU$750.0k constitutes the majority of total compensation received by the CEO.

ADVERTISEMENT

For comparison, other companies in the industry with market capitalizations below AU$270m, reported a median total CEO compensation of AU$416k. This suggests that Jag Sanger is paid more than the median for the industry. Moreover, Jag Sanger also holds AU$7.9m worth of Market Herald stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2021

2020

Proportion (2021)

Salary

AU$750k

AU$500k

61%

Other

AU$484k

AU$612k

39%

Total Compensation

AU$1.2m

AU$1.1m

100%

On an industry level, around 48% of total compensation represents salary and 52% is other remuneration. It's interesting to note that Market Herald 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.

ceo-compensation
ceo-compensation

A Look at The Market Herald Limited's Growth Numbers

Over the past three years, The Market Herald Limited has seen its earnings per share (EPS) grow by 72% per year. It achieved revenue growth of 91% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 The Market Herald Limited Been A Good Investment?

Most shareholders would probably be pleased with The Market Herald Limited for providing a total return of 247% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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. We did our research and identified 3 warning signs (and 1 which is a bit concerning) in Market Herald we think you should know about.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.