Should You Worry About Network Media Group Inc.'s (CVE:NTE) CEO Salary Level?
Derik Murray became the CEO of Network Media Group Inc. (CVE:NTE) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Network Media Group
How Does Derik Murray's Compensation Compare With Similar Sized Companies?
According to our data, Network Media Group Inc. has a market capitalization of CA$11m, and paid its CEO total annual compensation worth CA$291k over the year to November 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$186k. We looked at a group of companies with market capitalizations under CA$263m, and the median CEO total compensation was CA$160k.
As you can see, Derik Murray is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Network Media Group Inc. is paying too much. 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 Network Media Group, below.
Is Network Media Group Inc. Growing?
Over the last three years Network Media Group Inc. has shrunk its earnings per share by an average of 62% per year (measured with a line of best fit). Its revenue is up 252% over last year.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Network Media Group Inc. Been A Good Investment?
Given the total loss of 48% over three years, many shareholders in Network Media Group Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at Network Media Group Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Whatever your view on compensation, you might want to check if insiders are buying or selling Network Media Group shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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 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.
