In 2016 Mike Rumbolz was appointed CEO of Everi Holdings Inc. (NYSE:EVRI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Everi Holdings
How Does Mike Rumbolz's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Everi Holdings Inc. has a market cap of US$646m, and is paying total annual CEO compensation of US$4.2m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$700k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
Thus we can conclude that Mike Rumbolz receives more in total compensation than the median of a group of companies in the same market, and of similar size to Everi Holdings Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Everi Holdings has changed from year to year.
Is Everi Holdings Inc. Growing?
Over the last three years Everi Holdings Inc. has grown its earnings per share (EPS) by an average of 79% per year (using a line of best fit). In the last year, its revenue is down -32%.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business.
Has Everi Holdings Inc. Been A Good Investment?
Boasting a total shareholder return of 301% over three years, Everi Holdings Inc. has done well by shareholders. 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...
We compared the total CEO remuneration paid by Everi Holdings Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Everi Holdings shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.