NYSE:CNK) since 2015, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also assess whether Cinemark Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.” data-reactid=”28″>Mark Zoradi has been the CEO of Cinemark Holdings, Inc. (NYSE:CNK) since 2015, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also assess whether Cinemark Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Cinemark Holdings ” data-reactid=”29″> Check out our latest analysis for Cinemark Holdings
Comparing Cinemark Holdings, Inc.’s CEO Compensation With the industry
According to our data, Cinemark Holdings, Inc. has a market capitalization of US$1.3b, and paid its CEO total annual compensation worth US$6.3m over the year to December 2019. That’s a notable increase of 20% on last year. While this analysis focuses on total compensation, it’s worth acknowledging that the salary portion is lower, valued at US$1.1m.
On examining similar-sized companies in the industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$11m. That is to say, Mark Zoradi is paid under the industry median. What’s more, Mark Zoradi holds US$2.1m worth of shares in the company in their own name.
On an industry level, around 25% of total compensation represents salary and 75% is other remuneration. It’s interesting to note that Cinemark Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it’s an indicator that the executive’s salary is tied to company performance.
Cinemark Holdings, Inc.’s Growth
Over the last three years, Cinemark Holdings, Inc. has shrunk its earnings per share by 42% per year. In the last year, its revenue is down 33%.
this free visualization of analyst forecasts.” data-reactid=”54″>The decline in EPS is a bit concerning. 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. Historical performance can sometimes be a good indicator on what’s coming up next but if you want to peer into the company’s future you might be interested in this free visualization of analyst forecasts.
Has Cinemark Holdings, Inc. Been A Good Investment?
Since shareholders would have lost about 63% over three years, some Cinemark Holdings, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
As we touched on above, Cinemark Holdings, Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. EPS growth has failed to impress us, and the same can be said about shareholder returns. Although we wouldn’t say CEO compensation is high, it’s tough to foresee shareholders warming up to thoughts of a bump anytime soon.
2 warning signs for Cinemark Holdings (1 doesn’t sit too well with us!) that you should be aware of before investing here.” data-reactid=”59″>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 2 warning signs for Cinemark Holdings (1 doesn’t sit too well with us!) that you should be aware of before investing here.
list of high return, low debt companies is a great place to look.” data-reactid=”60″>Switching gears from Cinemark Holdings, if you’re hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”65″>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.