Canada markets closed

Is Stingray Group Inc.'s (TSE:RAY.A) CEO Paid Enough Relative To Peers?

Simply Wall St

Eric Boyko has been the CEO of Stingray Group Inc. (TSE:RAY.A) since 2007. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.

See our latest analysis for Stingray Group

How Does Eric Boyko's Compensation Compare With Similar Sized Companies?

According to our data, Stingray Group Inc. has a market capitalization of CA$504m, and paid its CEO total annual compensation worth CA$1.2m over the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at CA$479k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from CA$261m to CA$1.0b, and the median CEO total compensation was CA$1.3m.

That means Eric Boyko receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Stingray Group, below.

TSX:RAY.A CEO Compensation, January 22nd 2020

Is Stingray Group Inc. Growing?

Stingray Group Inc. has reduced its earnings per share by an average of 90% a year, over the last three years (measured with a line of best fit). Its revenue is up 117% over last year.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has Stingray Group Inc. Been A Good Investment?

Given the total loss of 16% over three years, many shareholders in Stingray Group Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Eric Boyko is paid around the same as most CEOs of similar size companies.

The company cannot boast particularly strong per share growth. And it's hard to argue that the returns over the last three years have delighted. So many would argue that the CEO is certainly not underpaid. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Stingray Group.

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.