We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Townsquare Media, Inc.'s (NYSE:TSQ) CEO For Now
Key Insights
Townsquare Media to hold its Annual General Meeting on 9th of May
Salary of US$1.45m is part of CEO Bill Wilson's total remuneration
The total compensation is 72% higher than the average for the industry
Over the past three years, Townsquare Media's EPS grew by 2.2% and over the past three years, the total shareholder return was 37%
Performance at Townsquare Media, Inc. (NYSE:TSQ) has been reasonably good and CEO Bill Wilson has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 9th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for Townsquare Media
How Does Total Compensation For Bill Wilson Compare With Other Companies In The Industry?
At the time of writing, our data shows that Townsquare Media, Inc. has a market capitalization of US$181m, and reported total annual CEO compensation of US$7.1m for the year to December 2023. That's a slight decrease of 7.1% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.5m.
On comparing similar companies from the American Media industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$4.1m. Hence, we can conclude that Bill Wilson is remunerated higher than the industry median. Furthermore, Bill Wilson directly owns US$6.2m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.5m | US$1.5m | 21% |
Other | US$5.6m | US$6.2m | 79% |
Total Compensation | US$7.1m | US$7.6m | 100% |
On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. Townsquare Media is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Townsquare Media, Inc.'s Growth
Over the past three years, Townsquare Media, Inc. has seen its earnings per share (EPS) grow by 2.2% per year. It saw its revenue drop 1.9% over the last year.
We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Townsquare Media, Inc. Been A Good Investment?
Boasting a total shareholder return of 37% over three years, Townsquare Media, Inc. 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.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Townsquare Media that investors should think about before committing capital to this stock.
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.
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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.
