Should You Worry About BSA Limited's (ASX:BSA) CEO Pay Cheque?

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. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for BSA

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

At the time of writing our data says that BSA Limited has a market cap of AU$110m, and is paying total annual CEO compensation of AU$776k. (This is based on the year to 2018). That's a fairly small increase of 7.0% on year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$651k. We looked at a group of companies with market capitalizations under AU$274m, and the median CEO compensation was AU$362k.

As you can see, Nick Yates is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean BSA Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at BSA has changed over time.

Is BSA Limited Growing?

Over the last three years BSA Limited has grown its earnings per share (EPS) by an average of 8.9% per year. Its revenue is up 14% over last year.

I think the revenue growth is good. And the modest growth in earnings per share isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching.

It could be important to check this free visual depiction of what analysts expect for the future.

Has BSA Limited Been A Good Investment?

I think that the total shareholder return of 85%, over three years, would leave most BSA Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO is paid more than is normal for a company of its 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. As discussed above, we discovered that the company pays more than the median of that group.

One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying BSA shares with their own money (free access).

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

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.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.