Our View On Genius Brands International's (NASDAQ:GNUS) CEO Pay
Andy Heyward has been the CEO of Genius Brands International, Inc. (NASDAQ:GNUS) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Genius Brands International.
See our latest analysis for Genius Brands International
How Does Total Compensation For Andy Heyward Compare With Other Companies In The Industry?
At the time of writing, our data shows that Genius Brands International, Inc. has a market capitalization of US$311m, and reported total annual CEO compensation of US$412k for the year to December 2019. Notably, that's an increase of 81% over the year before. We note that the salary portion, which stands at US$287.5k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$872k. This suggests that Andy Heyward is paid below the industry median. Furthermore, Andy Heyward directly owns US$18m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$288k | US$213k | 70% |
Other | US$124k | US$15k | 30% |
Total Compensation | US$412k | US$228k | 100% |
On an industry level, around 26% of total compensation represents salary and 74% is other remuneration. Genius Brands International pays out 70% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Genius Brands International, Inc.'s Growth
Genius Brands International, Inc. has reduced its earnings per share by 103% a year over the last three years. In the last year, its revenue is up 101%.
The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Genius Brands International, Inc. Been A Good Investment?
With a three year total loss of 52% for the shareholders, Genius Brands International, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As we noted earlier, Genius Brands International pays its CEO lower than the norm for similar-sized companies belonging to the same industry. But shareholder returns and EPS growth over the past three years are negative, which is cause for concern. On the flip side, recent revenue growth has been positive. Although it's fair to say CEO compensation is modest, shareholders might want to see healthier investor returns before thinking Andy deserves a raise.
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. In our study, we found 3 warning signs for Genius Brands International you should be aware of, and 2 of them can't be ignored.
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.
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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