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Is Genius Brands International, Inc.'s (NASDAQ:GNUS) CEO Paid Enough Relative To Peers?

Simply Wall St

Andy Heyward has been the CEO of Genius Brands International, Inc. (NASDAQ:GNUS) since 2013. 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. 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.

Check out our latest analysis for Genius Brands International

How Does Andy Heyward's Compensation Compare With Similar Sized Companies?

According to our data, Genius Brands International, Inc. has a market capitalization of US$9.4m, and paid its CEO total annual compensation worth US$228k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$213k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$510k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Genius Brands International has changed from year to year.

NasdaqCM:GNUS CEO Compensation, November 14th 2019

Is Genius Brands International, Inc. Growing?

Over the last three years Genius Brands International, Inc. has grown its earnings per share (EPS) by an average of 29% per year (using a line of best fit). Its revenue is down 51% over last year.

This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.

Has Genius Brands International, Inc. Been A Good Investment?

With a three year total loss of 90%, Genius Brands International, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Genius Brands International, Inc. is currently paying its CEO below what is normal for companies of its size.

Since the business is growing, many would argue this suggests the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we would not say that Andy Heyward is generously paid, it would be good to see an improvement in business performance before too an increase in pay. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. So you may want to check if insiders are buying Genius Brands International shares with their own money (free access).

If you want to buy a stock that is better than Genius Brands International, 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.