Is Everi Holdings Inc’s (NYSE:EVRI) CEO Overpaid Relative To Its Peers?
In 2016 Mike Rumbolz was appointed CEO of Everi Holdings Inc (NYSE:EVRI). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.
Check out our latest analysis for Everi Holdings
How Does Mike Rumbolz’s Compensation Compare With Similar Sized Companies?
Our data indicates that Everi Holdings Inc is worth US$472m, and total annual CEO compensation is US$2.2m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$615k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.6m.
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.
You can see, below, how CEO compensation at Everi Holdings has changed over time.
Is Everi Holdings Inc Growing?
Everi Holdings Inc has increased its earnings per share (EPS) by an average of 13% a year, over the last three years Its revenue is down -37% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Everi Holdings Inc Been A Good Investment?
Boasting a total shareholder return of 94% over three years, Everi Holdings Inc has done well by shareholders. So they may not be at all concerned if the CEO is 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. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Everi Holdings.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
