Yahoo Finance Should You Be Pleased About The CEO Pay At Jackpot Digital Inc.'s (CVE:JP)
The CEO of Jackpot Digital Inc. (CVE:JP) is Jake Kalpakian. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Jackpot Digital
How Does Jake Kalpakian's Compensation Compare With Similar Sized Companies?
Our data indicates that Jackpot Digital Inc. is worth CA$4.5m, and total annual CEO compensation was reported as CA$314k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$198k. We examined a group of similar sized companies, with market capitalizations of below CA$261m. The median CEO total compensation in that group is CA$217k.
It would therefore appear that Jackpot Digital Inc. pays Jake Kalpakian 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.
The graphic below shows how CEO compensation at Jackpot Digital has changed from year to year.
Is Jackpot Digital Inc. Growing?
On average over the last three years, Jackpot Digital Inc. has grown earnings per share (EPS) by 56% each year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. 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?
Since shareholders would have lost about 83% over three years, some Jackpot Digital Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at Jackpot Digital Inc. with the amount paid at companies with a similar market capitalization. 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. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. So you may want to check if insiders are buying Jackpot Digital shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
