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Christoph Mainusch has been the CEO of Central European Media Enterprises Ltd. (NASDAQ:CETV) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Christoph Mainusch's Compensation Compare With Similar Sized Companies?
Our data indicates that Central European Media Enterprises Ltd. is worth US$1.1b, and total annual CEO compensation is US$4.8m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$938k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
Thus we can conclude that Christoph Mainusch receives more in total compensation than the median of a group of companies in the same market, and of similar size to Central European Media Enterprises Ltd.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Central European Media Enterprises has changed over time.
Is Central European Media Enterprises Ltd. Growing?
Over the last three years Central European Media Enterprises Ltd. has grown its earnings per share (EPS) by an average of 105% per year (using a line of best fit). In the last year, its revenue changed by just 0.9%.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Central European Media Enterprises Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Central European Media Enterprises Ltd. for providing a total return of 93% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Central European Media Enterprises Ltd., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Central European Media Enterprises shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 firstname.lastname@example.org. 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.