How Much Is Jackpot Digital Inc. (CVE:JJ) CEO Getting Paid?

This article will reflect on the compensation paid to Jake Kalpakian who has served as CEO of Jackpot Digital Inc. (CVE:JJ) since 1999. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Jackpot Digital.

View our latest analysis for Jackpot Digital

How Does Total Compensation For Jake Kalpakian Compare With Other Companies In The Industry?

According to our data, Jackpot Digital Inc. has a market capitalization of CA$581k, and paid its CEO total annual compensation worth CA$229k over the year to December 2019. Notably, that's a decrease of 27% over the year before. We note that the salary portion, which stands at CA$198.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below CA$260m, reported a median total CEO compensation of CA$485k. That is to say, Jake Kalpakian is paid under the industry median.

Speaking on an industry level, nearly 72% of total compensation represents salary, while the remainder of 28% is other remuneration. It's interesting to note that Jackpot Digital pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Jackpot Digital Inc.'s Growth

Jackpot Digital Inc. has seen its earnings per share (EPS) increase by 77% a year over the past three years. Its revenue is down 38% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Jackpot Digital Inc. Been A Good Investment?

Since shareholders would have lost about 99% over three years, some Jackpot Digital Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we noted earlier, Jackpot Digital pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However we must not forget that the EPS growth has been very strong over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. But we believe shareholders would want to see healthier returns before the CEO gets a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Jackpot Digital (1 doesn't sit too well with us!) that you should be aware of before investing here.

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.

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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