Shareholders May Be More Conservative With Nexstar Media Group, Inc.'s (NASDAQ:NXST) CEO Compensation For Now

By
Simply Wall St
Published
June 02, 2021
NasdaqGS:NXST
Source: Shutterstock

Under the guidance of CEO Perry Sook, Nexstar Media Group, Inc. (NASDAQ:NXST) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 09 June 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Nexstar Media Group

How Does Total Compensation For Perry Sook Compare With Other Companies In The Industry?

Our data indicates that Nexstar Media Group, Inc. has a market capitalization of US$6.4b, and total annual CEO compensation was reported as US$24m for the year to December 2020. Notably, that's an increase of 44% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.7m.

For comparison, other companies in the same industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$6.7m. Hence, we can conclude that Perry Sook is remunerated higher than the industry median. Moreover, Perry Sook also holds US$196m worth of Nexstar Media Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20202019Proportion (2020)
Salary US$1.7m US$1.6m 7%
Other US$22m US$15m 93%
Total CompensationUS$24m US$16m100%

Speaking on an industry level, nearly 21% of total compensation represents salary, while the remainder of 79% is other remuneration. Nexstar Media Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
NasdaqGS:NXST CEO Compensation June 3rd 2021

A Look at Nexstar Media Group, Inc.'s Growth Numbers

Over the past three years, Nexstar Media Group, Inc. has seen its earnings per share (EPS) grow by 20% per year. Its revenue is up 29% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Nexstar Media Group, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Nexstar Media Group, Inc. for providing a total return of 134% over three years. 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.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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. We did our research and identified 3 warning signs (and 1 which is a bit unpleasant) in Nexstar Media Group we think you should know about.

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

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