An interesting Seeking Alpha article had some very favorable comments on Link Media’s parent company, publicly traded Boston Omaha (BOMN). Here are some highlights from the article.
Boston Omaha’s primary business lines are (1) General Indemnity Group specializing in surety bond underwriting and (2) Link Media Holdings involved in the outdoor advertising business.
Boston Omaha’s outdoor advertising business (Link Media Holdings) is a surprising fast-grower for the company.
Link Media has shown impressive growth in its own markets growing its billboard revenue 66.5% from $3.164 million in 2016 to $5.266 million in 2017.
Co-CEOs Adam Peterson and Alex Rozek’s interests are aligned well with average shareholders in three very important ways:
- Peterson and Rozek are the largest shareholders of the company. The co-CEOs together own 67% of Boston Omaha shares through their respective investment funds.
- Adam Peterson and Alex Rozek’s base salary is set to that of the U.S. federal minimum wage (currently $7.25 an hour). In 2017 the two co-CEOs were each paid an annual base salary of only $23,600. Do not feel too bad for Peterson and Rozek though, because…
- The two are entitled to bonuses through the company’s management incentive bonus plan. Their bonuses, however, are only earned when the company’s book value grows more than 6%. Additionally, any decrease in book value from the previous year must be recouped first before the 6% hurdle can be applied for the current year.
Insider’s Take – Link Media and their parent Boston Omaha have always said they are in the market for the long run. The compensation plan supports that as it is really nice for investors to see CEO compensation weighted very heavily towards company success. Adam and Alex are a solid team and, so far, proving it with early results.
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