Alan Sokol has been the CEO of Hemisphere Media Group, Inc. (NASDAQ:HMTV) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Alan Sokol's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Hemisphere Media Group, Inc. has a market cap of US$525m, and reported total annual CEO compensation of US$2.0m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$900k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.
That means Alan Sokol receives fairly typical remuneration for the CEO of a company that size. 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.
The graphic below shows how CEO compensation at Hemisphere Media Group has changed from year to year.
Is Hemisphere Media Group, Inc. Growing?
Hemisphere Media Group, Inc. has reduced its earnings per share by an average of 69% a year, over the last three years (measured with a line of best fit). Its revenue is up 25% 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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Hemisphere Media Group, Inc. Been A Good Investment?
Hemisphere Media Group, Inc. has served shareholders reasonably well, with a total return of 10% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Alan Sokol is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing earnings per share, and nor have the total returns inspired us. 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. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Hemisphere Media Group.
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.
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 email@example.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.