Yahoo Finance We Think Some Shareholders May Hesitate To Increase Comcast Corporation's (NASDAQ:CMCS.A) CEO Compensation
Key Insights
Comcast's Annual General Meeting to take place on 10th of June
CEO Brian Roberts' total compensation includes salary of US$2.50m
The overall pay is 69% above the industry average
Over the past three years, Comcast's EPS grew by 15% and over the past three years, the total loss to shareholders 24%
The underwhelming share price performance of Comcast Corporation (NASDAQ:CMCS.A) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 10th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
Check out our latest analysis for Comcast
Comparing Comcast Corporation's CEO Compensation With The Industry
At the time of writing, our data shows that Comcast Corporation has a market capitalization of US$157b, and reported total annual CEO compensation of US$35m for the year to December 2023. Notably, that's an increase of 11% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$2.5m.
For comparison, other companies in the American Media industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$21m. Hence, we can conclude that Brian Roberts is remunerated higher than the industry median. Moreover, Brian Roberts also holds US$1.4b worth of Comcast stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$2.5m | US$2.5m | 7% |
Other | US$33m | US$30m | 93% |
Total Compensation | US$35m | US$32m | 100% |
Talking in terms of the industry, salary represented approximately 19% of total compensation out of all the companies we analyzed, while other remuneration made up 81% of the pie. Comcast pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Comcast Corporation's Growth
Comcast Corporation's earnings per share (EPS) grew 15% per year over the last three years. It achieved revenue growth of 1.5% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Comcast Corporation Been A Good Investment?
Given the total shareholder loss of 24% over three years, many shareholders in Comcast Corporation are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Comcast that investors should be aware of in a dynamic business environment.
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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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.
