Here's Why It's Unlikely That The E.W. Scripps Company's (NASDAQ:SSP) CEO Will See A Pay Rise This Year

Key Insights

• E.W. Scripps to hold its Annual General Meeting on 6th of May
• Total pay for CEO Adam Symson includes US$1.28m salary
• The overall pay is comparable to the industry average
• E.W. Scripps' three-year loss to shareholders was 82% while its EPS was down 114% over the past three years

The results at The E.W. Scripps Company (NASDAQ:SSP) have been quite disappointing recently and CEO Adam Symson bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 6th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for E.W. Scripps

How Does Total Compensation For Adam Symson Compare With Other Companies In The Industry?

At the time of writing, our data shows that The E.W. Scripps Company has a market capitalization of US$315m, and reported total annual CEO compensation of US$5.3m for the year to December 2023. Notably, that's a decrease of 65% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.3m.

On comparing similar companies from the American Media industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$4.1m. From this we gather that Adam Symson is paid around the median for CEOs in the industry. Moreover, Adam Symson also holds US$1.8m worth of E.W. Scripps stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	US$1.3m	US$1.2m	24%
Other	US$4.0m	US$14m	76%
Total Compensation	US$5.3m	US$15m	100%

Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. E.W. Scripps is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at The E.W. Scripps Company's Growth Numbers

Over the last three years, The E.W. Scripps Company has shrunk its earnings per share by 114% per year. Its revenue is down 6.5% over the previous year.

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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has The E.W. Scripps Company Been A Good Investment?

With a total shareholder return of -82% over three years, The E.W. Scripps Company shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for E.W. Scripps that investors should be aware of in a dynamic business environment.

Important note: E.W. Scripps 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.