Yahoo Finance Is Great Canadian Gaming Corporation's (TSE:GC) CEO Pay Justified?
Rod Baker became the CEO of Great Canadian Gaming Corporation (TSE:GC) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.
View our latest analysis for Great Canadian Gaming
How Does Rod Baker's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Great Canadian Gaming Corporation has a market cap of CA$2.4b, and reported total annual CEO compensation of CA$6.2m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$777k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from CA$1.3b to CA$4.2b, we found the median CEO total compensation was CA$2.9m.
Thus we can conclude that Rod Baker receives more in total compensation than the median of a group of companies in the same market, and of similar size to Great Canadian Gaming Corporation. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Great Canadian Gaming has changed from year to year.
Is Great Canadian Gaming Corporation Growing?
Great Canadian Gaming Corporation has increased its earnings per share (EPS) by an average of 31% a year, over the last three years (using a line of best fit). Its revenue is up 65% over last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has Great Canadian Gaming Corporation Been A Good Investment?
Most shareholders would probably be pleased with Great Canadian Gaming Corporation for providing a total return of 81% over three years. 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...
We compared total CEO remuneration at Great Canadian Gaming Corporation 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. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Great Canadian Gaming.
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.
