We Think Shareholders May Want To Consider A Review Of Lee Enterprises, Incorporated's (NASDAQ:LEE) CEO Compensation Package

Key Insights

• Lee Enterprises will host its Annual General Meeting on 22nd of February
• Salary of US$813.5k is part of CEO Kevin Mowbray's total remuneration
• Total compensation is 134% above industry average
• Over the past three years, Lee Enterprises' EPS fell by 87% and over the past three years, the total loss to shareholders 56%

Shareholders will probably not be too impressed with the underwhelming results at Lee Enterprises, Incorporated (NASDAQ:LEE) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 22nd of February. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Lee Enterprises

Comparing Lee Enterprises, Incorporated's CEO Compensation With The Industry

Our data indicates that Lee Enterprises, Incorporated has a market capitalization of US$61m, and total annual CEO compensation was reported as US$1.3m for the year to September 2023. Notably, that's a decrease of 43% over the year before. Notably, the salary which is US$813.5k, represents most of the total compensation being paid.

In comparison with other companies in the American Media industry with market capitalizations under US$200m, the reported median total CEO compensation was US$567k. This suggests that Kevin Mowbray is paid more than the median for the industry. Furthermore, Kevin Mowbray directly owns US$1.3m worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	US$813k	US$900k	61%
Other	US$512k	US$1.4m	39%
Total Compensation	US$1.3m	US$2.3m	100%

Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. According to our research, Lee Enterprises has allocated a higher percentage of pay to salary in comparison to the wider 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.

A Look at Lee Enterprises, Incorporated's Growth Numbers

Over the last three years, Lee Enterprises, Incorporated has shrunk its earnings per share by 87% per year. In the last year, its revenue is down 13%.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Lee Enterprises, Incorporated Been A Good Investment?

Few Lee Enterprises, Incorporated shareholders would feel satisfied with the return of -56% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for Lee Enterprises (2 shouldn't be ignored!) that you should be aware of before investing here.

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. 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.