Vlad Suglobov is the CEO of G5 Entertainment AB (publ) (STO:G5EN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Vlad Suglobov's Compensation Compare With Similar Sized Companies?
According to our data, G5 Entertainment AB (publ) has a market capitalization of kr1.3b, and paid its CEO total annual compensation worth kr6.2m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at kr3.6m. We took a group of companies with market capitalizations below kr1.9b, and calculated the median CEO total compensation to be kr1.2m.
As you can see, Vlad Suglobov is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean G5 Entertainment AB (publ) is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at G5 Entertainment, below.
Is G5 Entertainment AB (publ) Growing?
Over the last three years G5 Entertainment AB (publ) has grown its earnings per share (EPS) by an average of 41% per year (using a line of best fit). Its revenue is down 7.7% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. You might want to check this free visual report on analyst forecasts for future earnings.
Has G5 Entertainment AB (publ) Been A Good Investment?
I think that the total shareholder return of 138%, over three years, would leave most G5 Entertainment AB (publ) shareholders smiling. 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.
We compared the total CEO remuneration paid by G5 Entertainment AB (publ), and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling G5 Entertainment shares (free trial).
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.
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