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Performance at Discovery, Inc. (NASDAQ:DISC.A) has been reasonably good and CEO David Zaslav has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 10 June 2021. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Discovery

How Does Total Compensation For David Zaslav Compare With Other Companies In The Industry?

At the time of writing, our data shows that Discovery, Inc. has a market capitalization of US$21b, and reported total annual CEO compensation of US$38m for the year to December 2020. We note that’s a decrease of 18% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$3.0m.

For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$21m. This suggests that David Zaslav is paid more than the median for the industry. Furthermore, David Zaslav directly owns US$112m worth of shares in the company, implying that they are deeply invested in the company’s success.

Component

2020

2019

Proportion (2020)

Salary

US$3.0m

US$3.0m

8%

Other

US$35m

US$43m

92%

Total Compensation

US$38m

US$46m

100%

Speaking on an industry level, nearly 21% of total compensation represents salary, while the remainder of 79% is other remuneration. Discovery pays a modest slice of remuneration through salary, as compared 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.

ceo-compensation

Discovery, Inc.’s Growth

Over the past three years, Discovery, Inc. has seen its earnings per share (EPS) grow by 60% per year. It saw its revenue drop 3.1% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Discovery, Inc. Been A Good Investment?

We think that the total shareholder return of 41%, over three years, would leave most Discovery, Inc. shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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. In our study, we found 4 warning signs for Discovery you should be aware of, and 1 of them is a bit unpleasant.

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.

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.

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