Here's Why SKY Network Television Limited's (NZSE:SKT) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• SKY Network Television's Annual General Meeting to take place on 14th of November
• CEO Sophie Moloney's total compensation includes salary of NZ$1.16m
• The total compensation is similar to the average for the industry
• SKY Network Television's total shareholder return over the past three years was 80% while its EPS grew by 5.6% over the past three years

CEO Sophie Moloney has done a decent job of delivering relatively good performance at SKY Network Television Limited (NZSE:SKT) recently. As shareholders go into the upcoming AGM on 14th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for SKY Network Television

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

According to our data, SKY Network Television Limited has a market capitalization of NZ$376m, and paid its CEO total annual compensation worth NZ$1.4m over the year to June 2024. That's a notable increase of 9.5% on last year. We note that the salary portion, which stands at NZ$1.16m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the New Zealand Media industry with market capitalizations between NZ$167m and NZ$668m, we discovered that the median CEO total compensation of that group was NZ$1.4m. From this we gather that Sophie Moloney is paid around the median for CEOs in the industry. Furthermore, Sophie Moloney directly owns NZ$671k worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	NZ$1.2m	NZ$969k	84%
Other	NZ$219k	NZ$294k	16%
Total Compensation	NZ$1.4m	NZ$1.3m	100%

Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. SKY Network Television is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at SKY Network Television Limited's Growth Numbers

SKY Network Television Limited's earnings per share (EPS) grew 5.6% per year over the last three years. Its revenue is up 1.6% over the last year.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has SKY Network Television Limited Been A Good Investment?

Boasting a total shareholder return of 80% over three years, SKY Network Television 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.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for SKY Network Television you should be aware of, and 1 of them is concerning.

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.