The performance at Playgon Games Inc. (CVE:DEAL) has been rather lacklustre of late and shareholders may be wondering what CEO Darcy Krogh is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 02 December 2022. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.
View our latest analysis for Playgon Games
Comparing Playgon Games Inc.'s CEO Compensation With The Industry
Our data indicates that Playgon Games Inc. has a market capitalization of CA$23m, and total annual CEO compensation was reported as CA$220k for the year to December 2021. Notably, that's an increase of 29% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$220k.
In comparison with other companies in the industry with market capitalizations under CA$268m, the reported median total CEO compensation was CA$347k. In other words, Playgon Games pays its CEO lower than the industry median. Moreover, Darcy Krogh also holds CA$621k worth of Playgon Games stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Speaking on an industry level, nearly 80% of total compensation represents salary, while the remainder of 20% is other remuneration. Speaking on a company level, Playgon Games prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Playgon Games Inc.'s Growth
Playgon Games Inc.'s earnings per share (EPS) grew 1.4% per year over the last three years. In the last year, its revenue is up 23,130%.
It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Playgon Games Inc. Been A Good Investment?
Few Playgon Games Inc. shareholders would feel satisfied with the return of -38% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
Playgon Games rewards its CEO solely through a salary, ignoring non-salary benefits completely. The fact that shareholders are sitting on a loss is certainly disheartening. The lacklustre earnings growth perhaps may have something to do with the downward trend in the share price. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 5 warning signs for Playgon Games you should be aware of, and 4 of them are potentially serious.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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