Yahoo Finance Is Beacon Lighting Group Limited’s (ASX:BLX) CEO Paid At A Competitive Rate?
Glen Robinson became the CEO of Beacon Lighting Group Limited (ASX:BLX) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Beacon Lighting Group
How Does Glen Robinson’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Beacon Lighting Group Limited has a market cap of AU$279m, and is paying total annual CEO compensation of AU$520k. (This number is for the twelve months until 2018). That’s a notable increase of 8.0% on last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$352k. We examined companies with market caps from AU$136m to AU$543m, and discovered that the median CEO compensation of that group was AU$750k.
A first glance this seems like a real positive for shareholders, since Glen Robinson is paid less than the average compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Beacon Lighting Group has changed over time.
Is Beacon Lighting Group Limited Growing?
On average over the last three years, Beacon Lighting Group Limited has grown earnings per share (EPS) by 1.5% each year. It achieved revenue growth of 9.4% over the last year.
I would argue that the improvement in revenue isn’t particularly impressive, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Beacon Lighting Group Limited Been A Good Investment?
With a three year total loss of 31%, Beacon Lighting Group Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
Beacon Lighting Group Limited is currently paying its CEO below what is normal for companies of its size.
Glen Robinson receives relatively low remuneration compared to similar sized companies. But the company isn’t exactly firing on all cylinders, and returns over three years are not good. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. Shareholders may want to check for free if Beacon Lighting Group insiders are buying or selling shares.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
