Login

HUGE DISCREPANCY OF CEO COMPENSATION VS. MEDIA COMPANY PERFORMANCE, STUDY FINDS Carmel Group Analysis IDs Imbalances, Big Numbers, and Three Key Outliers

July 26, 2015, Carmel, CA

The sums received by CEOs at Dish Network, DirecTV, and Comcast (in order) reflect a more balanced ratio of compensation to corporate financial results than most other top-tier media barons, according to The Carmel Group's new "Media Executive and Company Ratings Report." (www.carmelgroup.com). The study shows that among ten of the largest publicly-traded media companies analyzed, CBS and Discovery Communications get the least CEO bang for the buck.

The Carmel Group's performance study also rates, alphabetically, Disney, Time Warner, Time Warner Cable, Viacom, and 21st Century Fox. It includes hundreds of data points, graphics, and additional analysis and projections.

"Two companies that had almost zero customers 20 years ago [Dish and DirecTV], are today among the TV industry's performance leaders," said Jimmy Schaeffler, The Carmel Group's chairman and chief service officer. "In this Chaotic New Age of Broadband and Over-the-Top (OTT) Competition, innovation and best business practices are the successful CEO's ultimate contribution to corporate and shareholder success."

Findings from the composite study and analysis for the years 2012 to 2014 identify the top performers and compound annual growth (CAGR) in the U.S. media sector. This group of ten companies accounts for $56 billion in average 2014 year-end equity. Financial metrics measured include average compensation, revenues, net income, earnings per share (EPS), market capitalization, and equity. Patents and other “innovation” benchmarks, as well as social and charitable contributions, were also considered.

Key Study Findings:

  • During the three years studied, overall revenues for the ten companies grew at 3.5%, while the annual CEO compensation grew at 13% compounded annually, which matches the net income and market capitalization growth for the period.
  • DISH's Ergen (age 62) averaged $1.7 million annual compensation, CBS' Leslie Moonves (65) averaged $62 million, and Discovery's David Zaslav (55) averaged $79 million during the three-year period. DirecTV’s White (62), with $17 million annually, received 10 times the compensation of Ergen. That said, Ergen’s shareholdings vastly increase his net worth.
  • The overall study outliers were Messieurs Ergen, Moonves, and Zaslav.
  • The average age of the ten CEOs is 62; the average number of years experience is nearly 17.
  • At over 150 patents, Disney more than doubled the average number of 2012-2014 patents achieved by its next closest U.S. media rival.

The Carmel Group's mid-year 2015 study, titled "Media Executive and Company Ratings Report" (See, www.carmelgroup.com), includes research, charts, and analysis by M. Ben Jebara, PhD candidate at the University of Toledo, Ohio. For a full report, contact The Carmel Group at This email address is being protected from spambots. You need JavaScript enabled to view it., or 831 622 1111. The study price is $299.

About The Carmel Group: The Carmel Group is a 20-year-old media and telecom consultancy and research organization, focused on the global and U.S. pay TV, broadcast, and broadband/Over-The-Top (OTT) video industries.

Jimmy Schaeffler, Chairman & CSO

The Carmel Group Tel: (831) 622 1111

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Website: www.carmelgroup.com

Contact: This email address is being protected from spambots. You need JavaScript enabled to view it. 831 622 1111

Find us on Facebook
Find us on Linkedin
Find us on Youtube