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Does Gaming Realms plc's (LON:GMR) CEO Pay Compare Well With Peers?

Simply Wall St

Patrick Southon is the CEO of Gaming Realms plc (LON:GMR). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.

Check out our latest analysis for Gaming Realms

How Does Patrick Southon's Compensation Compare With Similar Sized Companies?

Our data indicates that Gaming Realms plc is worth UK£17m, and total annual CEO compensation is UK£263k. (This is based on the year to December 2018). Notably, the salary of UK£250k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under UK£160m, and the median CEO total compensation was UK£252k.

So Patrick Southon is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Gaming Realms has changed from year to year.

AIM:GMR CEO Compensation, July 23rd 2019

Is Gaming Realms plc Growing?

On average over the last three years, Gaming Realms plc has grown earnings per share (EPS) by 25% each year (using a line of best fit). Its revenue is down -19% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.

Has Gaming Realms plc Been A Good Investment?

With a three year total loss of 70%, Gaming Realms plc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Patrick Southon is paid around what is normal the leaders of comparable size companies.

We'd say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Gaming Realms shares (free trial).

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 editorial-team@simplywallst.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.