Key Insights

• Canterbury Park Holding to hold its Annual General Meeting on 6th of June
• Total pay for CEO Randy Sampson includes US$312.3k salary
• The overall pay is 38% below the industry average
• Canterbury Park Holding's total shareholder return over the past three years was 67% while its EPS grew by 83% over the past three years

Shareholders will be pleased by the impressive results for Canterbury Park Holding Corporation (NASDAQ:CPHC) recently and CEO Randy Sampson has played a key role. At the upcoming AGM on 6th of June, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

How Does Total Compensation For Randy Sampson Compare With Other Companies In The Industry?

Our data indicates that Canterbury Park Holding Corporation has a market capitalization of US$114m, and total annual CEO compensation was reported as US$519k for the year to December 2023. We note that's an increase of 12% above last year. In particular, the salary of US$312.3k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the American Hospitality industry with market capitalizations under US$200m, the reported median total CEO compensation was US$841k. In other words, Canterbury Park Holding pays its CEO lower than the industry median. Moreover, Randy Sampson also holds US$23m worth of Canterbury Park Holding stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 18% of total compensation out of all the companies we analyzed, while other remuneration made up 82% of the pie. Canterbury Park Holding is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Canterbury Park Holding Corporation's Growth

Canterbury Park Holding Corporation's earnings per share (EPS) grew 83% per year over the last three years. In the last year, its revenue is down 6.4%.

Shareholders would be glad to know that the company has improved itself over the last few years. 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 Canterbury Park Holding Corporation Been A Good Investment?

Most shareholders would probably be pleased with Canterbury Park Holding Corporation for providing a total return of 67% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Canterbury Park Holding that investors should be aware of in a dynamic business environment.

Important note: Canterbury Park Holding 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.