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Does eQube Gaming Limited's (CVE:EQG) CEO Salary Compare Well With Others?

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John Purcell became the CEO of eQube Gaming Limited (CVE:EQG) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for eQube Gaming

How Does John Purcell's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that eQube Gaming Limited has a market cap of CA$1.7m, and is paying total annual CEO compensation of CA$291k. (This number is for the twelve months until February 2018). While we always look at total compensation first, we note that the salary component is less, at CA$238k. We looked at a group of companies with market capitalizations under CA$267m, and the median CEO total compensation was CA$140k.

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It would therefore appear that eQube Gaming Limited pays John Purcell 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. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at eQube Gaming, below.

TSXV:EQG CEO Compensation, April 3rd 2019
TSXV:EQG CEO Compensation, April 3rd 2019

Is eQube Gaming Limited Growing?

eQube Gaming Limited has increased its earnings per share (EPS) by an average of 108% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 59%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has eQube Gaming Limited Been A Good Investment?

With a three year total loss of 75%, eQube Gaming Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We examined the amount eQube Gaming Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling eQube Gaming shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.