Jackpot Digital's Annual General Meeting to take place on 5th of December
CEO Jake Kalpakian's total compensation includes salary of CA$396.0k
Total compensation is similar to the industry average
Jackpot Digital's total shareholder return over the past three years was 25% while its EPS grew by 61% over the past three years
CEO Jake Kalpakian has done a decent job of delivering relatively good performance at Jackpot Digital Inc. (CVE:JJ) recently. As shareholders go into the upcoming AGM on 5th of December, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.
How Does Total Compensation For Jake Kalpakian Compare With Other Companies In The Industry?
According to our data, Jackpot Digital Inc. has a market capitalization of CA$14m, and paid its CEO total annual compensation worth CA$407k over the year to December 2022. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is CA$396.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the Canadian Hospitality industry with market capitalizations below CA$272m, we found that the median total CEO compensation was CA$506k. This suggests that Jackpot Digital remunerates its CEO largely in line with the industry average. What's more, Jake Kalpakian holds CA$95k worth of shares in the company in their own name.
On an industry level, around 71% of total compensation represents salary and 29% is other remuneration. Jackpot Digital pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Jackpot Digital Inc.'s Growth
Jackpot Digital Inc. has seen its earnings per share (EPS) increase by 61% a year over the past three years. Its revenue is up 107% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Jackpot Digital Inc. Been A Good Investment?
With a total shareholder return of 25% over three years, Jackpot Digital Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Jackpot Digital pays its CEO a majority of compensation through a salary. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 6 warning signs (and 2 which are a bit concerning) in Jackpot Digital we think you should know about.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.