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Is Everi Holdings Inc.'s (NYSE:EVRI) CEO Salary Justified?

Simply Wall St

Mike Rumbolz became the CEO of Everi Holdings Inc. (NYSE:EVRI) in 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Everi Holdings

How Does Mike Rumbolz's Compensation Compare With Similar Sized Companies?

According to our data, Everi Holdings Inc. has a market capitalization of US$1.1b, and paid its CEO total annual compensation worth US$4.2m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$700k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.6m.

As you can see, Mike Rumbolz is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Everi Holdings 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 Everi Holdings has changed from year to year.

NYSE:EVRI CEO Compensation, February 1st 2020

Is Everi Holdings Inc. Growing?

Over the last three years Everi Holdings Inc. has grown its earnings per share (EPS) by an average of 98% per year (using a line of best fit). It saw its revenue drop 15% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Everi Holdings Inc. Been A Good Investment?

Most shareholders would probably be pleased with Everi Holdings Inc. for providing a total return of 327% over three years. 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.

In Summary...

We compared the total CEO remuneration paid by Everi Holdings Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong 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 Everi Holdings.

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.