How Much is BSA Limited's (ASX:BSA) CEO Getting Paid?

In 2014 Nick Yates was appointed CEO of BSA Limited (ASX:BSA). 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. 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.

Check out our latest analysis for BSA

How Does Nick Yates's Compensation Compare With Similar Sized Companies?

Our data indicates that BSA Limited is worth AU$171m, and total annual CEO compensation was reported as AU$676k for the year to June 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$650k. We took a group of companies with market capitalizations below AU$297m, and calculated the median CEO total compensation to be AU$384k.

Thus we can conclude that Nick Yates receives more in total compensation than the median of a group of companies in the same market, and of similar size to BSA Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at BSA has changed from year to year.

Is BSA Limited Growing?

Over the last three years BSA Limited has grown its earnings per share (EPS) by an average of 81% per year (using a line of best fit). It achieved revenue growth of 9.7% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.

Has BSA Limited Been A Good Investment?

BSA Limited has generated a total shareholder return of 17% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

We compared the total CEO remuneration paid by BSA Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However, the earnings per share growth over three years is certainly impressive. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. So you may want to check if insiders are buying BSA shares with their own money (free access).

If you want to buy a stock that is better than BSA, this free list of high return, low debt companies is a great place to look.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.