Randy Sampson has been the CEO of Canterbury Park Holding Corporation (NASDAQ:CPHC) since 1994, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Canterbury Park Holding pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Randy Sampson Compare With Other Companies In The Industry?
Our data indicates that Canterbury Park Holding Corporation has a market capitalization of US$56m, and total annual CEO compensation was reported as US$401k for the year to December 2019. We note that's an increase of 15% above last year. In particular, the salary of US$270.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$435k. This suggests that Canterbury Park Holding remunerates its CEO largely in line with the industry average. Furthermore, Randy Sampson directly owns US$7.2m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, around 25% of total compensation represents salary and 75% is other remuneration. According to our research, Canterbury Park Holding has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Canterbury Park Holding Corporation's Growth
Canterbury Park Holding Corporation has reduced its earnings per share by 37% a year over the last three years. Its revenue is down 23% over the previous year.
The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Canterbury Park Holding Corporation Been A Good Investment?
With a three year total loss of 3.5% for the shareholders, Canterbury Park Holding Corporation would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we noted earlier, Canterbury Park Holding pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Canterbury Park Holding (1 is significant!) that you should be aware of before investing here.
Switching gears from Canterbury Park Holding, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. 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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