Michael Rapino has been the CEO of

Live Nation Entertainment,mississippi pot roast with stew meat Inc.

(

NYSE:LYV

) since 2005, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Live Nation Entertainment pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Live Nation Entertainment

How Does Total Compensation For Michael Rapino Compare With Other Companies In The Industry?

Our data indicates that Live Nation Entertainment, Inc. has a market capitalization of US$10b, and total annual CEO compensation was reported as US$15m for the year to December 2019. That's a notable increase of 26% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$3.0m.

On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$14m. From this we gather that Michael Rapino is paid around the median for CEOs in the industry. Furthermore, Michael Rapino directly owns US$126m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2019

2018

Proportion (2019)

Salary

US$3.0m

US$3.0m

21%

Other

US$12m

US$8.6m

79%

Total Compensation

US$15m

US$12m

100%

On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. It's interesting to note that Live Nation Entertainment pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation

A Look at Live Nation Entertainment, Inc.'s Growth Numbers

Live Nation Entertainment, Inc. has reduced its earnings per share by 91% a year over the last three years. It saw its revenue drop 28% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Live Nation Entertainment, Inc. Been A Good Investment?

Live Nation Entertainment, Inc. has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

Story continues

To Conclude...

As previously discussed, Michael is compensated close to the median for companies of its size, and which belong to the same industry. Live Nation Entertainment has had a tough time in recent years, with declining EPS growth, and although shareholder returns are stable, they are hardly worth celebrating. This doesn't compare well with CEO compensation, which is close to the industry median. We wouldn't go as far as saying CEO compensation is inappropriate, but we don't think the executive is underpaid.

Shareholders may want to

check for free if Live Nation Entertainment insiders are buying or selling shares.

Important note:

Live Nation Entertainment is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something

better

in

this list of interesting companies with high ROE 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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