We Discuss Why WideOpenWest, Inc.'s (NYSE:WOW) CEO Compensation May Be Closely Reviewed

Key Insights

• WideOpenWest will host its Annual General Meeting on 9th of May
• Total pay for CEO Teresa Elder includes US$894.3k salary
• The total compensation is similar to the average for the industry
• WideOpenWest's EPS declined by 38% over the past three years while total shareholder loss over the past three years was 76%

Shareholders will probably not be too impressed with the underwhelming results at WideOpenWest, Inc. (NYSE:WOW) recently. At the upcoming AGM on 9th of May, shareholders can hear from the board including their plans for turning around performance. 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 WideOpenWest

Comparing WideOpenWest, Inc.'s CEO Compensation With The Industry

According to our data, WideOpenWest, Inc. has a market capitalization of US$302m, and paid its CEO total annual compensation worth US$4.7m over the year to December 2023. We note that's a decrease of 9.9% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$894k.

For comparison, other companies in the American Media industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$4.4m. So it looks like WideOpenWest compensates Teresa Elder in line with the median for the industry. What's more, Teresa Elder holds US$6.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$894k	US$852k	19%
Other	US$3.8m	US$4.3m	81%
Total Compensation	US$4.7m	US$5.2m	100%

On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. Although there is a difference in how total compensation is set, WideOpenWest more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at WideOpenWest, Inc.'s Growth Numbers

Over the last three years, WideOpenWest, Inc. has shrunk its earnings per share by 38% per year. In the last year, its revenue is down 2.6%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has WideOpenWest, Inc. Been A Good Investment?

Few WideOpenWest, Inc. shareholders would feel satisfied with the return of -76% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

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 is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for WideOpenWest (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from WideOpenWest, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.