Is Everyman Media Group plc's (LON:EMAN) CEO Pay Justified?

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In 2014 Crispin Lilly was appointed CEO of Everyman Media Group plc (LON:EMAN). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.

See our latest analysis for Everyman Media Group

How Does Crispin Lilly's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Everyman Media Group plc has a market cap of UK£124m, and is paying total annual CEO compensation of UK£343k. (This figure is for the year to January 2019). While we always look at total compensation first, we note that the salary component is less, at UK£172k. We examined companies with market caps from UK£80m to UK£318m, and discovered that the median CEO total compensation of that group was UK£540k.

A first glance this seems like a real positive for shareholders, since Crispin Lilly is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

You can see a visual representation of the CEO compensation at Everyman Media Group, below.

AIM:EMAN CEO Compensation, July 15th 2019
AIM:EMAN CEO Compensation, July 15th 2019

Is Everyman Media Group plc Growing?

On average over the last three years, Everyman Media Group plc has grown earnings per share (EPS) by 94% each year (using a line of best fit). Its revenue is up 27% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Everyman Media Group plc Been A Good Investment?

I think that the total shareholder return of 98%, over three years, would leave most Everyman Media Group plc shareholders smiling. 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.

In Summary...

It looks like Everyman Media Group plc pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Crispin Lilly deserves a raise!

It's not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. So you may want to check if insiders are buying Everyman Media Group shares with their own money (free access).

If you want to buy a stock that is better than Everyman Media Group, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.

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