Zinc Media Group plc's (LON:ZIN) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Zinc Media Group will host its Annual General Meeting on 22nd of May
• Total pay for CEO Mark Browning includes UK£370.0k salary
• The total compensation is 104% higher than the average for the industry
• Zinc Media Group's three-year loss to shareholders was 48% while its EPS grew by 29% over the past three years

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In the past three years, the share price of Zinc Media Group plc (LON:ZIN) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 22nd of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Zinc Media Group

Comparing Zinc Media Group plc's CEO Compensation With The Industry

At the time of writing, our data shows that Zinc Media Group plc has a market capitalization of UK£15m, and reported total annual CEO compensation of UK£547k for the year to December 2024. Notably, that's an increase of 28% over the year before. Notably, the salary which is UK£370.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the British Entertainment industry with market capitalizations below UK£150m, we found that the median total CEO compensation was UK£269k. This suggests that Mark Browning is paid more than the median for the industry. Moreover, Mark Browning also holds UK£242k worth of Zinc Media Group stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	UK£370k	UK£270k	68%
Other	UK£177k	UK£156k	32%
Total Compensation	UK£547k	UK£426k	100%

Speaking on an industry level, nearly 67% of total compensation represents salary, while the remainder of 33% is other remuneration. Although there is a difference in how total compensation is set, Zinc Media Group more or less reflects the market in terms of setting the salary. 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.

Zinc Media Group plc's Growth

Zinc Media Group plc's earnings per share (EPS) grew 29% per year over the last three years. In the last year, its revenue is down 12%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Zinc Media Group plc Been A Good Investment?

Few Zinc Media Group plc shareholders would feel satisfied with the return of -48% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Zinc Media Group that investors should think about before committing capital to this stock.

Important note: Zinc Media Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.