Yahoo Finance How Should Investors Feel About Bell Financial Group Limited’s (ASX:BFG) CEO Pay?
Alastair Provan became the CEO of Bell Financial Group Limited (ASX:BFG) in 1989. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Alastair Provan’s Compensation Compare With Similar Sized Companies?
Our data indicates that Bell Financial Group Limited is worth AU$273m, and total annual CEO compensation is AU$794k. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$524k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$140m to AU$558m. The median total CEO compensation was AU$772k.
That means Alastair Provan receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Bell Financial Group has changed from year to year.
Is Bell Financial Group Limited Growing?
On average over the last three years, Bell Financial Group Limited has grown earnings per share (EPS) by 17% each year (using a line of best fit). It achieved revenue growth of 16% over the last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Bell Financial Group Limited Been A Good Investment?
Most shareholders would probably be pleased with Bell Financial Group Limited for providing a total return of 102% 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…
Alastair Provan is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bell Financial Group (free visualization of insider trades).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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.
