In 1998 Jonathon James Kennedy was appointed CEO of Glacier Media Inc (TSE:GVC). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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.
How Does Jonathon James Kennedy’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Glacier Media Inc has a market cap of CA$66m, and is paying total annual CEO compensation of CA$484k. (This number is for the twelve months until 2016). We think total compensation is more important but we note that the CEO salary is lower, at CA$384k. We took a group of companies with market capitalizations below CA$264m, and calculated the median CEO compensation to be CA$155k.
Thus we can conclude that Jonathon James Kennedy receives more in total compensation than the median of a group of companies in the same market, and of similar size to Glacier Media 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.
The graphic below shows how CEO compensation at Glacier Media has changed from year to year.
Is Glacier Media Inc Growing?
On average over the last three years, Glacier Media Inc has grown earnings per share (EPS) by 98% each year. It saw its revenue drop -1.5% over the last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Glacier Media Inc Been A Good Investment?
With a three year total loss of 21%, Glacier Media Inc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared the total CEO remuneration paid by Glacier Media Inc, and compared it to remuneration at a group of similar sized companies. 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. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Glacier Media shares (free trial).
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 firstname.lastname@example.org.