Yahoo Finance Increases to Jumbo Interactive Limited's (ASX:JIN) CEO Compensation Might Cool off for now
CEO Mike Veverka has done a decent job of delivering relatively good performance at Jumbo Interactive Limited (ASX:JIN) recently. As shareholders go into the upcoming AGM on 28 October 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Jumbo Interactive
Comparing Jumbo Interactive Limited's CEO Compensation With the industry
At the time of writing, our data shows that Jumbo Interactive Limited has a market capitalization of AU$1.0b, and reported total annual CEO compensation of AU$1.4m for the year to June 2021. That's a fairly small increase of 6.8% over the previous year. In particular, the salary of AU$834.4k, makes up a huge portion of the total compensation being paid to the CEO.
On examining similar-sized companies in the industry with market capitalizations between AU$534m and AU$2.1b, we discovered that the median CEO total compensation of that group was AU$995k. Hence, we can conclude that Mike Veverka is remunerated higher than the industry median. Moreover, Mike Veverka also holds AU$11m worth of Jumbo Interactive stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2021 | 2020 | Proportion (2021) |
Salary | AU$834k | AU$843k | 60% |
Other | AU$556k | AU$459k | 40% |
Total Compensation | AU$1.4m | AU$1.3m | 100% |
Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. There isn't a significant difference between Jumbo Interactive and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Jumbo Interactive Limited's Growth Numbers
Jumbo Interactive Limited's earnings per share (EPS) grew 24% per year over the last three years. In the last year, its revenue is up 17%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Jumbo Interactive Limited Been A Good Investment?
Most shareholders would probably be pleased with Jumbo Interactive Limited for providing a total return of 157% 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...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Jumbo Interactive that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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