Yahoo Finance Should Shareholders Reconsider Cumulus Media Inc.'s (NASDAQ:CMLS) CEO Compensation Package?
Key Insights
Cumulus Media to hold its Annual General Meeting on 2nd of May
Total pay for CEO Mary Berner includes US$1.45m salary
Total compensation is 467% above industry average
Cumulus Media's three-year loss to shareholders was 71% while its EPS was down 6.7% over the past three years
Cumulus Media Inc. (NASDAQ:CMLS) has not performed well recently and CEO Mary Berner will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 2nd 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. The data we present below explains why we think CEO compensation is not consistent with recent performance.
Check out our latest analysis for Cumulus Media
How Does Total Compensation For Mary Berner Compare With Other Companies In The Industry?
According to our data, Cumulus Media Inc. has a market capitalization of US$46m, and paid its CEO total annual compensation worth US$4.5m over the year to December 2023. We note that's a decrease of 17% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.5m.
For comparison, other companies in the American Media industry with market capitalizations below US$200m, reported a median total CEO compensation of US$797k. This suggests that Mary Berner is paid more than the median for the industry. Moreover, Mary Berner also holds US$754k worth of Cumulus Media stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.5m | US$1.5m | 32% |
Other | US$3.1m | US$4.0m | 68% |
Total Compensation | US$4.5m | US$5.5m | 100% |
On an industry level, roughly 16% of total compensation represents salary and 84% is other remuneration. It's interesting to note that Cumulus Media pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Cumulus Media Inc.'s Growth Numbers
Over the last three years, Cumulus Media Inc. has shrunk its earnings per share by 6.7% per year. In the last year, its revenue is down 11%.
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. 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 Cumulus Media Inc. Been A Good Investment?
With a total shareholder return of -71% over three years, Cumulus Media Inc. shareholders would by and large be disappointed. 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.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Cumulus Media that investors should think about before committing capital to this 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.
