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Martin Carlesund became the CEO of Evolution Gaming Group AB (publ) (STO:EVO) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Martin Carlesund's Compensation Compare With Similar Sized Companies?
According to our data, Evolution Gaming Group AB (publ) has a market capitalization of kr35b, and pays its CEO total annual compensation worth €816k. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €628k. When we examined a selection of companies with market caps ranging from €1.8b to €5.7b, we found the median CEO total compensation was €816k.
So Martin Carlesund receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Evolution Gaming Group has changed from year to year.
Is Evolution Gaming Group AB (publ) Growing?
Evolution Gaming Group AB (publ) has increased its earnings per share (EPS) by an average of 44% a year, over the last three years (using a line of best fit). Its revenue is up 44% over last year.
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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Evolution Gaming Group AB (publ) Been A Good Investment?
Most shareholders would probably be pleased with Evolution Gaming Group AB (publ) for providing a total return of 302% 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.
Martin Carlesund is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Evolution Gaming Group.
If you want to buy a stock that is better than Evolution Gaming Group, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.