Yahoo Finance Is Bluechiip Limited's (ASX:BCT) CEO Being Overpaid?
Andrew McLellan became the CEO of Bluechiip Limited (ASX:BCT) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Bluechiip
How Does Andrew McLellan's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Bluechiip Limited has a market cap of AU$84m, and reported total annual CEO compensation of AU$459k for the year to June 2019. That's a notable increase of 8.1% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$249k. We examined a group of similar sized companies, with market capitalizations of below AU$292m. The median CEO total compensation in that group is AU$378k.
So Andrew McLellan receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Bluechiip, below.
Is Bluechiip Limited Growing?
Bluechiip Limited has increased its earnings per share (EPS) by an average of 8.9% a year, over the last three years (using a line of best fit). It achieved revenue growth of 83% over the last year.
It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Bluechiip Limited Been A Good Investment?
Most shareholders would probably be pleased with Bluechiip Limited for providing a total return of 275% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Andrew McLellan is paid around what is normal the leaders of comparable size companies.
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bluechiip (free visualization of insider trades).
If you want to buy a stock that is better than Bluechiip, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
