- Corus Entertainment to hold its Annual General Meeting on 19 January 2023
- CEO Doug Murphy’s total compensation includes salary of CA$900.0k
- Total compensation is similar to the industry average
- Corus Entertainment’s EPS grew by 15% over the past three years while total shareholder return over the past three years was -50%
Shareholders of Corus Entertainment Inc. (TSE:CJR.B) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 19 January 2023 could be an opportunity for shareholders to bring these concerns to the board’s attention. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
Check out our latest analysis for Corus Entertainment
Comparing Corus Entertainment Inc.’s CEO Compensation With The Industry
At the time of writing, our data shows that Corus Entertainment Inc. has a market capitalization of CA$451m, and reported total annual CEO compensation of CA$4.5m for the year to August 2022. This means that the compensation hasn’t changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$900k.
On comparing similar companies from the Canadian Media industry with market caps ranging from CA$267m to CA$1.1b, we found that the median CEO total compensation was CA$4.5m. This suggests that Corus Entertainment remunerates its CEO largely in line with the industry average. What’s more, Doug Murphy holds CA$686k worth of shares in the company in their own name.
Speaking on an industry level, nearly 49% of total compensation represents salary, while the remainder of 51% is other remuneration. In Corus Entertainment’s case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It’s important to note that a slant towards non-salary compensation suggests that total pay is tied to the company’s performance.
A Look at Corus Entertainment Inc.’s Growth Numbers
Corus Entertainment Inc.’s earnings per share (EPS) grew 15% per year over the last three years. It achieved revenue growth of 3.6% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Corus Entertainment Inc. Been A Good Investment?
With a total shareholder return of -50% over three years, Corus Entertainment Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn’t grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Corus Entertainment that investors should look into moving forward.
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.
Valuation is complex, but we’re helping make it simple.
Find out whether Corus Entertainment is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.
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