The CEO of Jayride Group Limited (ASX:JAY) is Rod Bishop, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Jayride Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Jayride Group
How Does Total Compensation For Rod Bishop Compare With Other Companies In The Industry?
Our data indicates that Jayride Group Limited has a market capitalization of AU$18m, and total annual CEO compensation was reported as AU$417k for the year to June 2020. That's a notable decrease of 27% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$187k.
On comparing similar-sized companies in the industry with market capitalizations below AU$259m, we found that the median total CEO compensation was AU$341k. So it looks like Jayride Group compensates Rod Bishop in line with the median for the industry. Furthermore, Rod Bishop directly owns AU$1.6m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$187k | AU$200k | 45% |
| Other | AU$230k | AU$369k | 55% |
| Total Compensation | AU$417k | AU$569k | 100% |
Talking in terms of the industry, salary represented approximately 63% of total compensation out of all the companies we analyzed, while other remuneration made up 37% of the pie. It's interesting to note that Jayride Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Jayride Group Limited's Growth Numbers
Jayride Group Limited's earnings per share (EPS) grew 8.2% per year over the last three years. In the last year, its revenue is down 74%.
We generally like to see a little revenue growth, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Jayride Group Limited Been A Good Investment?
Since shareholders would have lost about 59% over three years, some Jayride Group Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As previously discussed, Rod is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, Jayride Group is suffering from adverse shareholder returns and althoughEPS have grown over the past three years, they have not been extraordinary. CEO pay isn't exceptionally high, but considering poor performance, shareholders will likely hold off support for a raise until results improve.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 5 warning signs for Jayride Group (of which 3 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Important note: Jayride 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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About ASX:JAY
Jayride Group
Owns and operates airport transfers marketplace in Oceania, Asia, the Americas, Europe, the Middle East, Africa, and the Pacific.
Moderate and slightly overvalued.
