Yahoo Finance Why oOh!media Limited's (ASX:OML) CEO Pay Matters To You
Brendon Cook is the CEO of oOh!media Limited (ASX:OML). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
See our latest analysis for oOh!media
How Does Brendon Cook's Compensation Compare With Similar Sized Companies?
According to our data, oOh!media Limited has a market capitalization of AU$795m, and paid its CEO total annual compensation worth AU$1.6m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at AU$750k. We looked at a group of companies with market capitalizations from AU$299m to AU$1.2b, and the median CEO total compensation was AU$1.1m.
It would therefore appear that oOh!media Limited pays Brendon Cook more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at oOh!media has changed from year to year.
Is oOh!media Limited Growing?
On average over the last three years, oOh!media Limited has shrunk earnings per share by 5.0% each year (measured with a line of best fit). In the last year, its revenue is up 49%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has oOh!media Limited Been A Good Investment?
Since shareholders would have lost about 17% over three years, some oOh!media Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount oOh!media Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling oOh!media shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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