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Nick Earl became the CEO of Glu Mobile Inc. (NASDAQ:GLUU) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Nick Earl's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Glu Mobile Inc. has a market cap of US$1.0b, and is paying total annual CEO compensation of US$9.3m. (This number is for the twelve months until December 2018). We note that's an increase of 257% above last year. While we always look at total compensation first, we note that the salary component is less, at US$456k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
As you can see, Nick Earl is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Glu Mobile Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Glu Mobile has changed from year to year.
Is Glu Mobile Inc. Growing?
Over the last three years Glu Mobile Inc. has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). In the last year, its revenue is up 22%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Glu Mobile Inc. Been A Good Investment?
Boasting a total shareholder return of 224% over three years, Glu Mobile Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount Glu Mobile Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Glu Mobile insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.