Our Take On The New York Times Company’s (NYSE:NYT) CEO Salary
In 2012 Mark J. Thompson was appointed CEO of The New York Times Company (NYSE:NYT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Mark J. Thompson’s Compensation Compare With Similar Sized Companies?
Our data indicates that The New York Times Company is worth US$3.7b, and total annual CEO compensation is US$5.2m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.0m. 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.
So Mark J. Thompson is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at New York Times has changed over time.
Is The New York Times Company Growing?
On average over the last three years, The New York Times Company has shrunk earnings per share by 30% each year. It achieved revenue growth of 6.5% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
You might want to check this free visual report on analyst forecasts for future earnings.
Has The New York Times Company Been A Good Investment?
Most shareholders would probably be pleased with The New York Times Company for providing a total return of 100% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary…
Remuneration for Mark J. Thompson is close enough to the median pay for a CEO of a similar sized company .
The company isn’t growing earnings per share, but shareholder returns have been strong over the last three years. So we can’t see a reason to suggest the pay is inappropriate. So you may want to check if insiders are buying New York Times shares with their own money (free access).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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.
