Yahoo Finance It Looks Like Lee Enterprises, Incorporated's (NASDAQ:LEE) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
Lee Enterprises to hold its Annual General Meeting on 22nd of February
Salary of US$813.5k is part of CEO Kevin Mowbray's total remuneration
The total compensation is 134% higher than the average for the industry
Lee Enterprises' EPS declined by 87% over the past three years while total shareholder loss over the past three years was 56%
The results at Lee Enterprises, Incorporated (NASDAQ:LEE) have been quite disappointing recently and CEO Kevin Mowbray bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 22nd of February. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.
Check out our latest analysis for Lee Enterprises
How Does Total Compensation For Kevin Mowbray Compare With Other Companies In The Industry?
At the time of writing, our data shows that Lee Enterprises, Incorporated has a market capitalization of US$61m, and reported total annual CEO compensation of US$1.3m for the year to September 2023. That's a notable decrease of 43% on last year. We note that the salary portion, which stands at US$813.5k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the American Media industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$567k. This suggests that Kevin Mowbray is paid more than the median for the industry. What's more, Kevin Mowbray holds US$1.3m worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$813k | US$900k | 61% |
Other | US$512k | US$1.4m | 39% |
Total Compensation | US$1.3m | US$2.3m | 100% |
Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. Lee Enterprises pays out 61% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Lee Enterprises, Incorporated's Growth
Over the last three years, Lee Enterprises, Incorporated has shrunk its earnings per share by 87% per year. In the last year, its revenue is down 13%.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Lee Enterprises, Incorporated Been A Good Investment?
With a total shareholder return of -56% over three years, Lee Enterprises, Incorporated shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
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.
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. We identified 4 warning signs for Lee Enterprises (2 make us uncomfortable!) that you should be aware of before investing here.
Important note: Lee Enterprises is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.
