Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2011 Rod Baker was appointed CEO of Great Canadian Gaming Corporation (TSE:GC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Rod Baker's Compensation Compare With Similar Sized Companies?
According to our data, Great Canadian Gaming Corporation has a market capitalization of CA$2.9b, and pays its CEO total annual compensation worth CA$6.2m. (This figure is for the year to December 2018). That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at CA$777k. When we examined a selection of companies with market caps ranging from CA$1.3b to CA$4.3b, we found the median CEO total compensation was CA$3.1m.
Thus we can conclude that Rod Baker receives more in total compensation than the median of a group of companies in the same market, and of similar size to Great Canadian Gaming Corporation. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Great Canadian Gaming, below.
Is Great Canadian Gaming Corporation Growing?
Over the last three years Great Canadian Gaming Corporation has grown its earnings per share (EPS) by an average of 27% per year (using a line of best fit). In the last year, its revenue is up 99%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has Great Canadian Gaming Corporation Been A Good Investment?
Boasting a total shareholder return of 184% over three years, Great Canadian Gaming Corporation 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.
We compared total CEO remuneration at Great Canadian Gaming Corporation with the amount paid at companies with a similar market capitalization. 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. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Great Canadian Gaming.
Important note: Great Canadian Gaming may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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 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.