Duncan Hon became the CEO of Emerson Radio Corp. (NYSEMKT:MSN) in 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.
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How Does Duncan Hon's Compensation Compare With Similar Sized Companies?
According to our data, Emerson Radio Corp. has a market capitalization of US$23m, and pays its CEO total annual compensation worth US$540k. (This is based on the year to March 2018). Notably, the salary of US$540k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$448k.
So Duncan Hon receives a similar amount to the median CEO pay, amongst 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 Emerson Radio, below.
Is Emerson Radio Corp. Growing?
Emerson Radio Corp. has reduced its earnings per share by an average of 80% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -22%.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Emerson Radio Corp. Been A Good Investment?
Boasting a total shareholder return of 59% over three years, Emerson Radio Corp. 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.
Duncan Hon is paid around what is normal the leaders of comparable size companies.
The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we doubt many are complaining about the fairly normal CEO pay. So you may want to check if insiders are buying Emerson Radio shares with their own money (free access).
Important note: Emerson Radio 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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