Yahoo Finance Should You Worry About Animoca Brands Corporation Limited's (ASX:AB1) CEO Pay Cheque?
Robby Yung is the CEO of Animoca Brands Corporation Limited (ASX:AB1). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Animoca Brands
How Does Robby Yung's Compensation Compare With Similar Sized Companies?
According to our data, Animoca Brands Corporation Limited has a market capitalization of AU$161m, and pays its CEO total annual compensation worth AU$123k. (This is based on the year to December 2018). Notably, the salary of AU$123k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under AU$296m, and the median CEO total compensation was AU$360k.
A first glance this seems like a real positive for shareholders, since Robby Yung is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Animoca Brands, below.
Is Animoca Brands Corporation Limited Growing?
Over the last three years Animoca Brands Corporation Limited has grown its earnings per share (EPS) by an average of 53% per year (using a line of best fit). Its revenue is up 83% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Animoca Brands Corporation Limited Been A Good Investment?
Animoca Brands Corporation Limited has generated a total shareholder return of 27% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
It looks like Animoca Brands Corporation Limited pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Robby Yung is overcompensated.
It's great to see a company that pays its CEO reasonably, even while growing. It would be an additional positive if insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Animoca Brands.
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.
