How Should Investors Feel About Monaker Group Inc’s (NASDAQ:MKGI) CEO Pay?
Bill Kerby has been the CEO of Monaker Group Inc (NASDAQ:MKGI) since 2004. 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.
See our latest analysis for Monaker Group
How Does Bill Kerby’s Compensation Compare With Similar Sized Companies?
Our data indicates that Monaker Group Inc is worth US$13m, and total annual CEO compensation is US$415k. We note that’s an increase of 20% above last year. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$293k.
It would therefore appear that Monaker Group Inc pays Bill Kerby more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Monaker Group, below.
Is Monaker Group Inc Growing?
On average over the last three years, Monaker Group Inc has grown earnings per share (EPS) by 102% each year. In the last year, its revenue is up 9.5%.
This demonstrates that the company has been improving recently. A good result. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Monaker Group Inc Been A Good Investment?
Since shareholders would have lost about 85% over three years, some Monaker Group Inc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared the total CEO remuneration paid by Monaker Group 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. So shareholders might not feel great about the fact that CEO pay increased on last year. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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.
