In 2014 Mooky Greidinger was appointed CEO of Cineworld Group plc (LON:CINE). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Cineworld Group
How Does Mooky Greidinger's Compensation Compare With Similar Sized Companies?
Our data indicates that Cineworld Group plc is worth UK£2.6b, and total annual CEO compensation was reported as US$2.8m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$621k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£1.6b to UK£5.0b. The median total CEO compensation was UK£1.8m.
It would therefore appear that Cineworld Group plc pays Mooky Greidinger more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Cineworld Group, below.
Is Cineworld Group plc Growing?
Cineworld Group plc has reduced its earnings per share by an average of 27% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 78% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.
Has Cineworld Group plc Been A Good Investment?
Given the total loss of 23% over three years, many shareholders in Cineworld Group plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Cineworld Group plc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.