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Is ePlay Digital Inc.'s (CNSX:EPY) CEO Paid Enough Relative To Peers?

Simply Wall St

Lee Doerksen has been the CEO of ePlay Digital Inc. (CNSX:EPY) since 2016. 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. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for ePlay Digital

How Does Lee Doerksen's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that ePlay Digital Inc. has a market cap of CA$3.9m, and reported total annual CEO compensation of CA$141k for the year to December 2018. Notably, the salary of CA$141k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below CA$266m, and calculated the median CEO total compensation to be CA$180k.

So Lee Doerksen receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at ePlay Digital has changed over time.

CNSX:EPY CEO Compensation, December 4th 2019

Is ePlay Digital Inc. Growing?

On average over the last three years, ePlay Digital Inc. has grown earnings per share (EPS) by 30% each year (using a line of best fit). Its revenue is down 71% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has ePlay Digital Inc. Been A Good Investment?

Since shareholders would have lost about 85% over three years, some ePlay Digital Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Lee Doerksen is paid around the same as most CEOs of similar size companies.

We like that the company is growing EPS, 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. So you may want to check if insiders are buying ePlay Digital shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.