Shareholders May Not Be So Generous With Full House Resorts, Inc.'s (NASDAQ:FLL) CEO Compensation And Here's Why

Key Insights

• Full House Resorts to hold its Annual General Meeting on 9th of May
• Total pay for CEO Dan Lee includes US$600.0k salary
• The overall pay is comparable to the industry average
• Full House Resorts' three-year loss to shareholders was 46% while its EPS was down 99% over the past three years

In the past three years, the share price of Full House Resorts, Inc. (NASDAQ:FLL) has struggled to grow and now shareholders are sitting on a loss. Per share earnings growth is also poor, despite revenues growing. The AGM coming up on 9th of May will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

Check out our latest analysis for Full House Resorts

Comparing Full House Resorts, Inc.'s CEO Compensation With The Industry

According to our data, Full House Resorts, Inc. has a market capitalization of US$170m, and paid its CEO total annual compensation worth US$1.2m over the year to December 2023. Notably, that's a decrease of 16% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$600k.

For comparison, other companies in the American Hospitality industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$1.4m. So it looks like Full House Resorts compensates Dan Lee in line with the median for the industry. Moreover, Dan Lee also holds US$7.3m worth of Full House Resorts 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	US$600k	US$600k	48%
Other	US$648k	US$887k	52%
Total Compensation	US$1.2m	US$1.5m	100%

On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. According to our research, Full House Resorts has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Full House Resorts, Inc.'s Growth

Full House Resorts, Inc. has reduced its earnings per share by 99% a year over the last three years. Its revenue is up 48% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Full House Resorts, Inc. Been A Good Investment?

With a total shareholder return of -46% over three years, Full House Resorts, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Full House Resorts that you should be aware of before investing.

Switching gears from Full House Resorts, 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.

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

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.