Does Betmakers Technology Group's (ASX:BET) CEO Salary Compare Well With The Performance Of The Company?

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.

Check out 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$382m, and total annual CEO compensation was reported as AU$268k for the year to June 2020. We note that's an increase of 24% above last year. We note that the salary portion, which stands at AU$240.1k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from AU$132m to AU$529m, the reported median CEO total compensation was AU$598k. Accordingly, Betmakers Technology Group pays its CEO under the industry median. What's more, Todd Buckingham holds AU$9.5m 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 77% of total compensation represents salary, while the remainder of 23% 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 has seen its earnings per share (EPS) increase by 72% a year over the past three years. It achieved revenue growth of 39% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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?

Most shareholders would probably be pleased with Betmakers Technology Group Ltd for providing a total return of 121% 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...

As previously discussed, Todd is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Todd's performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Betmakers Technology Group that you should be aware of before investing.

Important note: Betmakers Technology Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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