Yahoo Finance Shareholders May Not Be So Generous With BlueScope Steel Limited's (ASX:BSL) CEO Compensation And Here's Why
Performance at BlueScope Steel Limited (ASX:BSL) has been reasonably good and CEO Mark Vassella has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 21 November 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.
Check out our latest analysis for BlueScope Steel
Comparing BlueScope Steel Limited's CEO Compensation With The Industry
According to our data, BlueScope Steel Limited has a market capitalization of AU$7.8b, and paid its CEO total annual compensation worth AU$4.9m over the year to June 2022. That's a notable decrease of 11% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$1.8m.
In comparison with other companies in the industry with market capitalizations ranging from AU$6.0b to AU$18b, the reported median CEO total compensation was AU$3.6m. Hence, we can conclude that Mark Vassella is remunerated higher than the industry median. What's more, Mark Vassella holds AU$17m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2022 | 2021 | Proportion (2022) |
Salary | AU$1.8m | AU$1.8m | 37% |
Other | AU$3.1m | AU$3.7m | 63% |
Total Compensation | AU$4.9m | AU$5.5m | 100% |
On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. It's interesting to note that BlueScope Steel 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 BlueScope Steel Limited's Growth Numbers
Over the past three years, BlueScope Steel Limited has seen its earnings per share (EPS) grow by 48% per year. It achieved revenue growth of 47% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has BlueScope Steel Limited Been A Good Investment?
BlueScope Steel Limited has served shareholders reasonably well, with a total return of 29% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for BlueScope Steel you should be aware of, and 1 of them is a bit unpleasant.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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