Who Makes What at the Public OOH Companies

The public out of home executives took pay cuts during 2020.  Here’s a breakdown of who made what at Lamar, OUTFRONT and Clear Channel Outdoor, based on data in each company’s Schedule 14A.

Total Compensation for Public US Out of Home  Company Executives 2019 and 2020 compared with last year and last 5 year’s stock return and enterprise value.

Three observations.

Lamar’s execs are underpaid or OUTFRONT and Clear Channel’s execs are overpaid.  Lamar has better one and five year stock returns.  Some of you will say OUTFRONT and Clear Channel are larger more complex companies so need higher executive salaries.  But look at the enterprise value of Lamar (e.g. the market value of all of its assets).  It’s twice the size of Clear Channel and OUTFRONT.    Insider suspects the Lamar execs take lower salaries because the Reilly family has a huge huge stock position so is less interested in executive compensation than in total return, including the change in the value of the family’s stock.

12 of the 13 executives had a pay cut last year, ranging from 4% for OUTFRONT CFO Matt Siegel to 57% for Clear Channel Outdoor CEO William Eccleshare.   It’s only fair that executive pay falls at a time when employees are asked to cut salaries and face layoffs.

The only executive to get a raise was Lamar’s CFO Jay Johnson.  His pay increased by 53% to $2.5 million  Even though he started with Lamar in May 2019, Insider thinks Johnson earned every penny.  He spearheaded proactive cuts to keep Lamar margins up; he extended the company’s maturities and refinanced at a lower rate just prior to the covid crisis; and he successfully raised capital during covid.  Lamar was the only company of the big three which did not have to ask for an amendment or waiver or non-compliance with financial covenants during covid.

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