Key Insights

• Full House Resorts will host its Annual General Meeting on 9th of May
• Total pay for CEO Dan Lee includes US$600.0k salary
• The total compensation is similar to the average for the industry
• Full House Resorts' three-year loss to shareholders was 46% while its EPS was down 99% over the past three years

In the past three years, the share price of Full House Resorts, Inc. (NASDAQ:FLL) has struggled to grow and now shareholders are sitting on a loss. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. Shareholders will have a chance to take their concerns to the board at the next AGM on 9th of May and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

How Does Total Compensation For Dan Lee Compare With Other Companies In The Industry?

At the time of writing, our data shows that Full House Resorts, Inc. has a market capitalization of US$170m, and reported total annual CEO compensation of US$1.2m for the year to December 2023. Notably, that's a decrease of 16% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$600k.

In comparison with other companies in the American Hospitality industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$1.4m. This suggests that Full House Resorts remunerates its CEO largely in line with the industry average. Furthermore, Dan Lee directly owns US$7.3m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. According to our research, Full House Resorts has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Full House Resorts, Inc.'s Growth

Over the last three years, Full House Resorts, Inc. has shrunk its earnings per share by 99% per year. It achieved revenue growth of 48% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Full House Resorts, Inc. Been A Good Investment?

The return of -46% over three years would not have pleased Full House Resorts, Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Full House Resorts that investors should look into moving forward.

Switching gears from Full House Resorts, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.