The CEO of One Media iP Group Plc (LON:OMIP) is Michael Infante, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing One Media iP Group Plc's CEO Compensation With the industry
At the time of writing, our data shows that One Media iP Group Plc has a market capitalization of UK£14m, and reported total annual CEO compensation of UK£150k for the year to October 2019. We note that's an increase of 9.7% above last year. Notably, the salary which is UK£127.2k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below UK£155m, reported a median total CEO compensation of UK£137k. From this we gather that Michael Infante is paid around the median for CEOs in the industry. Furthermore, Michael Infante directly owns UK£1.6m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, nearly 78% of total compensation represents salary, while the remainder of 22% is other remuneration. There isn't a significant difference between One Media iP Group and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
One Media iP Group Plc's Growth
One Media iP Group Plc's earnings per share (EPS) grew 52% per year over the last three years. In the last year, its revenue is up 28%.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has One Media iP Group Plc Been A Good Investment?
Boasting a total shareholder return of 90% over three years, One Media iP Group Plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As previously discussed, Michael is compensated close to the median for companies of its size, and which belong to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.
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 4 warning signs for One Media iP Group (of which 2 are a bit concerning!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from One Media iP Group, 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.
This article by Simply Wall St is general in nature. 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.
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