Key Insights

Jumbo Interactive will host its Annual General Meeting on 9th of November Total pay for CEO Mike Veverka includes AU$769.8k salary The overall pay is comparable to the industry average Jumbo Interactive's EPS grew by 6.5% over the past three years  while total shareholder return over the past three years was 28%

Performance at Jumbo Interactive Limited (ASX:JIN) has been reasonably good and CEO Mike Veverka has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 9th of November. We present our case of why we think CEO compensation looks fair.

Check out 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$864m, and reported total annual CEO compensation of AU$1.3m for the year to June 2023. We note that's a decrease of 11% compared to last year. Notably, the salary which is AU$769.8k, represents a considerable chunk of the total compensation being paid.

On comparing similar companies from the Australian Hospitality industry with market caps ranging from AU$315m to AU$1.3b, we found that the median CEO total compensation was AU$1.3m. This suggests that Jumbo Interactive remunerates its CEO largely in line with the industry average. Moreover, Mike Veverka also holds AU$9.3m 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 2023 2022 Proportion (2023) Salary AU$770k AU$821k 57% Other AU$579k AU$697k 43% Total Compensation AU$1.3m AU$1.5m 100%

Speaking on an industry level, nearly 57% of total compensation represents salary, while the remainder of 43% is other remuneration. Jumbo Interactive is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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.

 ceo-compensation

Jumbo Interactive Limited's Growth

Jumbo Interactive Limited has seen its earnings per share (EPS) increase by 6.5% a year over the past three years. Its revenue is up 14% over the last year.

This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. 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 Jumbo Interactive Limited Been A Good Investment?

Jumbo Interactive Limited has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Jumbo Interactive that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this freelist of interesting companies.

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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.