Why We Think Shareholders May Be Considering Bumping Up Boku, Inc.'s (LON:BOKU) CEO Compensation

The solid performance at Boku, Inc. (LON:BOKU) has been impressive and shareholders will probably be pleased to know that CEO Jon Prideaux has delivered. At the upcoming AGM on 19 May 2021, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Boku

Comparing Boku, Inc.'s CEO Compensation With the industry

Our data indicates that Boku, Inc. has a market capitalization of UK£511m, and total annual CEO compensation was reported as US$435k for the year to December 2020. We note that's an increase of 8.9% above last year. We note that the salary portion, which stands at US$320.5k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from UK£284m to UK£1.1b, we found that the median CEO total compensation was US$732k. This suggests that Jon Prideaux is paid below the industry median. Furthermore, Jon Prideaux directly owns UK£5.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$320k	US$301k	74%
Other	US$115k	US$99k	26%
Total Compensation	US$435k	US$400k	100%

On an industry level, around 63% of total compensation represents salary and 37% is other remuneration. Boku is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Boku, Inc.'s Growth Numbers

Over the past three years, Boku, Inc. has seen its earnings per share (EPS) grow by 84% per year. It achieved revenue growth of 12% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, 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 Boku, Inc. Been A Good Investment?

Boasting a total shareholder return of 70% over three years, Boku, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 3 warning signs for Boku that you should be aware of before investing.

Switching gears from Boku, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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