Key Insights

• Playgon Games will host its Annual General Meeting on 1st of December

• CEO Darcy Krogh's total compensation includes salary of CA$220.0k

• Total compensation is 41% below industry average

• Playgon Games' three-year loss to shareholders was 85% while its EPS was down 13% over the past three years

The performance at Playgon Games Inc. (CVE:DEAL) has been rather lacklustre of late and shareholders may be wondering what CEO Darcy Krogh is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 1st of December. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out our latest analysis for Playgon Games

Comparing Playgon Games Inc.'s CEO Compensation With The Industry

According to our data, Playgon Games Inc. has a market capitalization of CA$19m, and paid its CEO total annual compensation worth CA$220k over the year to December 2022. This was the same amount the CEO received in the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$220k.

For comparison, other companies in the Canadian Interactive Media and Services industry with market capitalizations below CA$273m, reported a median total CEO compensation of CA$372k. That is to say, Darcy Krogh is paid under the industry median. Furthermore, Darcy Krogh directly owns CA$506k worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. At the company level, Playgon Games pays Darcy Krogh solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Playgon Games Inc.'s Growth

Over the last three years, Playgon Games Inc. has shrunk its earnings per share by 13% per year. Its revenue is up 153% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Playgon Games Inc. Been A Good Investment?

With a total shareholder return of -85% over three years, Playgon Games Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Playgon Games rewards its CEO solely through a salary, ignoring non-salary benefits completely. The fact that shareholders are sitting on a loss is certainly disheartening. The poor performance of the share price might have something to do with the lack of earnings growth. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 7 warning signs for Playgon Games (5 are significant!) that you should be aware of before investing here.

Important note: Playgon Games is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.