Yahoo Finance Should You Worry About Entertainment One Ltd’s (LON:ETO) CEO Pay?
In 2003 Darren Throop was appointed CEO of Entertainment One Ltd (LON:ETO). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Entertainment One
How Does Darren Throop’s Compensation Compare With Similar Sized Companies?
Our data indicates that Entertainment One Ltd is worth UK£1.9b, and total annual CEO compensation is UK£2m. That’s a notable increase of 11% on last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£1.6b to UK£5.0b. The median total CEO compensation was UK£2m.
That means Darren Throop receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Entertainment One has changed from year to year.
Is Entertainment One Ltd Growing?
Over the last three years Entertainment One Ltd has shrunk its earnings per share by an average of 26% per year. In the last year, its revenue is down -3.5%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Entertainment One Ltd Been A Good Investment?
Most shareholders would probably be pleased with Entertainment One Ltd for providing a total return of 90% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Darren Throop is paid around what is normal the leaders of comparable size companies.
The company isn’t growing earnings per share, but shareholder returns have been strong over the last three years. So we think most shareholders wouldn’t be too worried about CEO compensation, which is close to the median for similar sized companies. Whatever your view on compensation, you might want to check if insiders are buying or selling Entertainment One Ltd shares (free trial).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
