In 2016 Jirka Rysavy was appointed CEO of Gaia, Inc. (NASDAQ:GAIA). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jirka Rysavy’s Compensation Compare With Similar Sized Companies?
Our data indicates that Gaia, Inc. is worth US$199m, and total annual CEO compensation is US$955k. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at US$478k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO compensation was US$927k.
That means Jirka Rysavy receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Gaia, below.
Is Gaia, Inc. Growing?
Over the last three years Gaia, Inc. has shrunk its earnings per share by an average of 59% per year (measured with a line of best fit). In the last year, its revenue is up 62%.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Gaia, Inc. Been A Good Investment?
Boasting a total shareholder return of 93% over three years, Gaia, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Jirka Rysavy is paid around what is normal the leaders of comparable size companies.
While the growth could be better, the shareholder returns are clearly good. So considering most shareholders would be happy, we’d say the CEO pay is appropriate. Shareholders may want to check for free if Gaia insiders are buying or selling shares.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.