Yahoo Finance Here's What We Learned About The CEO Pay At engage:BDR Limited (ASX:EN1)
Ted Dhanik has been the CEO of engage:BDR Limited (ASX:EN1) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether engage:BDR pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for engage:BDR
How Does Total Compensation For Ted Dhanik Compare With Other Companies In The Industry?
According to our data, engage:BDR Limited has a market capitalization of AU$13m, and paid its CEO total annual compensation worth AU$678k over the year to December 2019. That's a fairly small increase of 3.2% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$338k.
On comparing similar-sized companies in the industry with market capitalizations below AU$268m, we found that the median total CEO compensation was AU$535k. From this we gather that Ted Dhanik is paid around the median for CEOs in the industry.
Component | 2019 | 2018 | Proportion (2019) |
Salary | AU$338k | AU$288k | 50% |
Other | AU$341k | AU$369k | 50% |
Total Compensation | AU$678k | AU$657k | 100% |
On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. It's interesting to note that engage:BDR allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at engage:BDR Limited's Growth Numbers
engage:BDR Limited has seen its earnings per share (EPS) increase by 69% a year over the past three years. It achieved revenue growth of 64% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has engage:BDR Limited Been A Good Investment?
With a three year total loss of 98% for the shareholders, engage:BDR Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As previously discussed, Ted is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But on the bright side, EPS growth is positive over the same period. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 4 warning signs for engage:BDR (3 shouldn't be ignored!) that you should be aware of before investing here.
Switching gears from engage:BDR, 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.
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. 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.
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