Todd Buckingham is the CEO of Betmakers Technology Group Ltd (ASX:BET), and in this article, we analyze the executive’s compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Betmakers Technology Group
How Does Total Compensation For Todd Buckingham Compare With Other Companies In The Industry?
According to our data, Betmakers Technology Group Ltd has a market capitalization of AU$254m, and paid its CEO total annual compensation worth AU$268k over the year to June 2020. That’s a notable increase of 24% on last year. Notably, the salary which is AU$240.1k, represents most of the total compensation being paid.
For comparison, other companies in the same industry with market capitalizations ranging between AU$136m and AU$545m had a median total CEO compensation of AU$600k. Accordingly, Betmakers Technology Group pays its CEO under the industry median. What’s more, Todd Buckingham holds AU$6.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Speaking on an industry level, nearly 75% of total compensation represents salary, while the remainder of 25% is other remuneration. Betmakers Technology Group pays out 90% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Betmakers Technology Group Ltd’s Growth
Betmakers Technology Group Ltd’s earnings per share (EPS) grew 72% per year over the last three years. Its revenue is up 39% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Betmakers Technology Group Ltd Been A Good Investment?
Most shareholders would probably be pleased with Betmakers Technology Group Ltd for providing a total return of 35% 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.
As we noted earlier, Betmakers Technology Group pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Todd’s performance.
CEO compensation can have a massive impact on performance, but it’s just one element. We’ve identified 2 warning signs for Betmakers Technology Group that investors should be aware of in a dynamic business environment.
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.
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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