How Much Is ZoomerMedia Limited (CVE:ZUM) CEO Getting Paid?

This article will reflect on the compensation paid to Moses Znaimer who has served as CEO of ZoomerMedia Limited (CVE:ZUM) since 2007. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for ZoomerMedia

How Does Total Compensation For Moses Znaimer Compare With Other Companies In The Industry?

Our data indicates that ZoomerMedia Limited has a market capitalization of CA$78m, and total annual CEO compensation was reported as CA$1.4m for the year to August 2020. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at CA$1.38m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below CA$253m, we found that the median total CEO compensation was CA$681k. Hence, we can conclude that Moses Znaimer is remunerated higher than the industry median. Moreover, Moses Znaimer also holds CA$47m worth of ZoomerMedia stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. ZoomerMedia is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at ZoomerMedia Limited's Growth Numbers

Over the past three years, ZoomerMedia Limited has seen its earnings per share (EPS) grow by 119% per year. Its revenue is down 3.5% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has ZoomerMedia Limited Been A Good Investment?

Boasting a total shareholder return of 57% over three years, ZoomerMedia Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

ZoomerMedia pays its CEO a majority of compensation through a salary. As we touched on above, ZoomerMedia Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, ZoomerMedia has produced strong EPS growth and shareholder returns over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. Given the strong history of shareholder returns, the shareholders are probably very happy with Moses's performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for ZoomerMedia (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

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.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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