It's Unlikely That The CEO Of Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) Will See A Huge Pay Rise This Year

Key Insights

• Clear Channel Outdoor Holdings' Annual General Meeting to take place on 16th of May
• Salary of US$1.10m is part of CEO Scott Wells's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Clear Channel Outdoor Holdings' EPS grew by 73% and over the past three years, the total loss to shareholders 25%

Shareholders of Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 16th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Clear Channel Outdoor Holdings

How Does Total Compensation For Scott Wells Compare With Other Companies In The Industry?

According to our data, Clear Channel Outdoor Holdings, Inc. has a market capitalization of US$745m, and paid its CEO total annual compensation worth US$4.8m over the year to December 2023. That's a notable decrease of 20% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.

In comparison with other companies in the American Media industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$5.6m. From this we gather that Scott Wells is paid around the median for CEOs in the industry. Furthermore, Scott Wells directly owns US$3.5m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$1.1m	US$1.1m	23%
Other	US$3.7m	US$4.9m	77%
Total Compensation	US$4.8m	US$6.0m	100%

Speaking on an industry level, nearly 19% of total compensation represents salary, while the remainder of 81% is other remuneration. Clear Channel Outdoor Holdings 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 Clear Channel Outdoor Holdings, Inc.'s Growth Numbers

Clear Channel Outdoor Holdings, Inc.'s earnings per share (EPS) grew 73% per year over the last three years. It saw its revenue drop 13% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Clear Channel Outdoor Holdings, Inc. Been A Good Investment?

With a three year total loss of 25% for the shareholders, Clear Channel Outdoor Holdings, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Clear Channel Outdoor Holdings (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

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.