How Should Investors Feel About Boku's (LON:BOKU) CEO Remuneration?
Jon Prideaux became the CEO of Boku, Inc. (LON:BOKU) in 2014, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Boku
How Does Total Compensation For Jon Prideaux Compare With Other Companies In The Industry?
Our data indicates that Boku, Inc. has a market capitalization of UK£333m, and total annual CEO compensation was reported as UK£400k for the year to December 2019. That's a notable decrease of 8.7% on last year. We note that the salary portion, which stands at US$300.9k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the same industry with market capitalizations ranging between UK£152m and UK£606m had a median total CEO compensation of UK£597k. That is to say, Jon Prideaux is paid under the industry median. What's more, Jon Prideaux holds UK£3.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | UK£301k | UK£278k | 75% |
Other | UK£99k | UK£159k | 25% |
Total Compensation | UK£400k | UK£438k | 100% |
On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. Our data reveals that Boku allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Boku, Inc.'s Growth
Over the past three years, Boku, Inc. has seen its earnings per share (EPS) grow by 90% per year. In the last year, its revenue is up 22%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Boku, Inc. Been A Good Investment?
Boasting a total shareholder return of 58% over three years, Boku, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
As we noted earlier, Boku pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Jon's performance.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 3 warning signs for Boku that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
