Yahoo Finance Should You Worry About Emerson Radio Corp.'s (NYSEMKT:MSN) CEO Salary Level?
Duncan Hon has been the CEO of Emerson Radio Corp. (NYSEMKT:MSN) since 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Emerson Radio
How Does Duncan Hon's Compensation Compare With Similar Sized Companies?
Our data indicates that Emerson Radio Corp. is worth US$18m, and total annual CEO compensation was reported as US$545k for the year to March 2019. Notably, the salary of US$545k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$523k.
So Duncan Hon is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Emerson Radio has changed from year to year.
Is Emerson Radio Corp. Growing?
Over the last three years Emerson Radio Corp. has shrunk its earnings per share by an average of 48% per year (measured with a line of best fit). It saw its revenue drop 45% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Emerson Radio Corp. Been A Good Investment?
With a three year total loss of 18%, Emerson Radio Corp. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Duncan Hon is paid around the same as most CEOs of similar size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! Shareholders may want to check for free if Emerson Radio insiders are buying or selling shares.
If you want to buy a stock that is better than Emerson Radio, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
