Is Hemisphere Media Group, Inc.'s (NASDAQ:HMTV) CEO Paid Enough Relative To Peers?
Alan Sokol became the CEO of Hemisphere Media Group, Inc. (NASDAQ:HMTV) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Hemisphere Media Group
How Does Alan Sokol's Compensation Compare With Similar Sized Companies?
According to our data, Hemisphere Media Group, Inc. has a market capitalization of US$577m, and pays its CEO total annual compensation worth US$1.7m. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$900k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.6m.
So Alan Sokol is paid around the average of the companies we looked at. 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.
You can see a visual representation of the CEO compensation at Hemisphere Media Group, below.
Is Hemisphere Media Group, Inc. Growing?
On average over the last three years, Hemisphere Media Group, Inc. has shrunk earnings per share by 91% each year (measured with a line of best fit). Its revenue is up 18% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Hemisphere Media Group, Inc. Been A Good Investment?
Hemisphere Media Group, Inc. has served shareholders reasonably well, with a total return of 23% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Remuneration for Alan Sokol is close enough to the median pay for a CEO of a similar sized company .
We feel that earnings per share have been a bit disappointing, but and we don't think the total returns are amazing. We do not think the CEO pay is a problem, but it's probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Hemisphere Media Group (free visualization of insider trades).
Important note: Hemisphere Media Group 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.
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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.
