Yahoo Finance Why Funcom SE's (OB:FUNCOM) CEO Pay Matters To You
Rui Casais became the CEO of Funcom SE (OB:FUNCOM) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Funcom
How Does Rui Casais's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Funcom SE has a market cap of kr951m, and reported total annual CEO compensation of US$622k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$260k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$402k.
As you can see, Rui Casais is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Funcom SE is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Funcom, below.
Is Funcom SE Growing?
On average over the last three years, Funcom SE has grown earnings per share (EPS) by 29% each year (using a line of best fit). Revenue was pretty flat on last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.
Has Funcom SE Been A Good Investment?
I think that the total shareholder return of 48%, over three years, would leave most Funcom SE shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We examined the amount Funcom SE pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Funcom.
Important note: Funcom may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
