Here's Why Shareholders Will Not Be Complaining About SKY Network Television Limited's (NZSE:SKT) CEO Pay Packet

Key Insights

• SKY Network Television's Annual General Meeting to take place on 7th of November
• Total pay for CEO Sophie Moloney includes NZ$969.4k salary
• The total compensation is similar to the average for the industry
• SKY Network Television's total shareholder return over the past three years was 121% while its EPS grew by 121% over the past three years

The performance at SKY Network Television Limited (NZSE:SKT) has been quite strong recently and CEO Sophie Moloney has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 7th of November. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for SKY Network Television

How Does Total Compensation For Sophie Moloney Compare With Other Companies In The Industry?

Our data indicates that SKY Network Television Limited has a market capitalization of NZ$419m, and total annual CEO compensation was reported as NZ$1.2m for the year to June 2023. Notably, that's a decrease of 8.8% over the year before. We note that the salary portion, which stands at NZ$969.4k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the New Zealand Media industry with market capitalizations ranging from NZ$172m to NZ$687m, the reported median CEO total compensation was NZ$1.4m. So it looks like SKY Network Television compensates Sophie Moloney in line with the median for the industry. Furthermore, Sophie Moloney directly owns NZ$583k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	NZ$969k	NZ$933k	84%
Other	NZ$183k	NZ$331k	16%
Total Compensation	NZ$1.2m	NZ$1.3m	100%

Talking in terms of the industry, salary represented approximately 57% of total compensation out of all the companies we analyzed, while other remuneration made up 43% of the pie. It's interesting to note that SKY Network Television pays out a greater portion of remuneration through salary, compared to the industry. 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.

SKY Network Television Limited's Growth

Over the past three years, SKY Network Television Limited has seen its earnings per share (EPS) grow by 121% per year. It achieved revenue growth of 2.6% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has SKY Network Television Limited Been A Good Investment?

Boasting a total shareholder return of 121% over three years, SKY Network Television Limited has done well by shareholders. 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which is a bit unpleasant) in SKY Network Television we think you should know about.

Important note: SKY Network Television 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.