Here’s What We Think About Nexstar Media Group, Inc.’s (NASDAQ:NXST) CEO Pay
Perry Sook became the CEO of Nexstar Media Group, Inc. (NASDAQ:NXST) in 1996. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
Check out our latest analysis for Nexstar Media Group
How Does Perry Sook’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Nexstar Media Group, Inc. has a market cap of US$3.7b, and is paying total annual CEO compensation of US$19m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$1.5m. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO compensation of that group was US$5.1m.
Thus we can conclude that Perry Sook receives more in total compensation than the median of a group of companies in the same market, and of similar size to Nexstar Media Group, Inc.. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Nexstar Media Group, below.
Is Nexstar Media Group, Inc. Growing?
On average over the last three years, Nexstar Media Group, Inc. has grown earnings per share (EPS) by 67% each year (using a line of best fit). It achieved revenue growth of 26% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Nexstar Media Group, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Nexstar Media Group, Inc. for providing a total return of 67% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared total CEO remuneration at Nexstar Media Group, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Nexstar Media Group insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
