Is Hemisphere Media Group Inc’s (NASDAQ:HMTV) CEO Pay Justified?

Alan Sokol has been the CEO of Hemisphere Media Group Inc (NASDAQ:HMTV) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Hemisphere Media Group

How Does Alan Sokol’s Compensation Compare With Similar Sized Companies?

Our data indicates that Hemisphere Media Group Inc is worth US$534m, and total annual CEO compensation is US$2m. That’s actually a decrease on the year before. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$2m.

So Alan Sokol is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Hemisphere Media Group, below.

NasdaqGM:HMTV CEO Compensation November 7th 18
NasdaqGM:HMTV CEO Compensation November 7th 18

Is Hemisphere Media Group Inc Growing?

Hemisphere Media Group Inc has reduced its earnings per share by an average of 89% a year, over the last three years. Its revenue is down -11% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. So this free report on the analyst consensus forecasts could help you make a master move on this stock.

Has Hemisphere Media Group Inc Been A Good Investment?

Since shareholders would have lost about 5.3% over three years, some Hemisphere Media Group Inc shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

Alan Sokol is paid around the same as most CEOs of similar size companies.

Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don’t think the CEO is underpaid! This article has given you an idea about how to analyse CEO remuneration, but it’s important to look at other leaders in the company, too. So I like to check the tenure of the Board of Directors, before reaching any conclusions.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 editorial-team@simplywallst.com.