In 2012 John Levy was appointed CEO of Score Media and Gaming Inc. (CVE:SCR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does John Levy's Compensation Compare With Similar Sized Companies?
Our data indicates that Score Media and Gaming Inc. is worth CA$286m, and total annual CEO compensation was reported as CA$1.2m for the year to August 2019. Notably, that's an increase of 53% over the year before. While we always look at total compensation first, we note that the salary component is less, at CA$640k. We looked at a group of companies with market capitalizations from CA$130m to CA$522m, and the median CEO total compensation was CA$885k.
Thus we can conclude that John Levy receives more in total compensation than the median of a group of companies in the same market, and of similar size to Score Media and Gaming Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Score Media and Gaming has changed from year to year.
Is Score Media and Gaming Inc. Growing?
Score Media and Gaming Inc. has increased its earnings per share (EPS) by an average of 33% a year, over the last three years (using a line of best fit). It achieved revenue growth of 12% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Score Media and Gaming Inc. Been A Good Investment?
I think that the total shareholder return of 248%, over three years, would leave most Score Media and Gaming Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at Score Media and Gaming Inc. with the amount paid at companies with a similar market capitalization. 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. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Score Media and Gaming insiders are buying or selling shares.
If you want to buy a stock that is better than Score Media and Gaming, this free list of high return, low debt companies is a great place to look.
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