The decent performance at Betmakers Technology Group Ltd (ASX:BET) recently will please most shareholders as they go into the AGM coming up on 26 April 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

See our latest analysis for Betmakers Technology Group

How Does Total Compensation For Todd Buckingham Compare With Other Companies In The Industry?

Our data indicates that Betmakers Technology Group Ltd has a market capitalization of AU$1.0b, and total annual CEO compensation was reported as AU$268k for the year to June 2020. That's a notable increase of 24% on last year. In particular, the salary of AU$240.1k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from AU$517m to AU$2.1b, we found that the median CEO total compensation was AU$1.3m. That is to say, Todd Buckingham is paid under the industry median. Moreover, Todd Buckingham also holds AU$18m worth of Betmakers Technology Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component 2020 2019 Proportion (2020) Salary AU$240k AU$194k 90% Other AU$28k AU$23k 10% Total Compensation AU$268k AU$217k 100%

Talking in terms of the industry, salary represented approximately 79% of total compensation out of all the companies we analyzed, while other remuneration made up 21% of the pie. Betmakers Technology Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

 ceo-compensation

A Look at Betmakers Technology Group Ltd's Growth Numbers

Over the past three years, Betmakers Technology Group Ltd has seen its earnings per share (EPS) grow by 5.0% per year. Its revenue is up 63% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Betmakers Technology Group Ltd Been A Good Investment?

We think that the total shareholder return of 1,022%, over three years, would leave most Betmakers Technology Group Ltd shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Betmakers Technology Group (1 doesn't sit too well with us!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this freelist 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.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.