It Looks Like Shareholders Would Probably Approve Bell Financial Group Limited's (ASX:BFG) CEO Compensation Package

It would be hard to discount the role that CEO Alastair Provan has played in delivering the impressive results at Bell Financial Group Limited (ASX:BFG) recently. Coming up to the next AGM on 28 April 2021, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Bell Financial Group

How Does Total Compensation For Alastair Provan Compare With Other Companies In The Industry?

According to our data, Bell Financial Group Limited has a market capitalization of AU$600m, and paid its CEO total annual compensation worth AU$1.0m over the year to December 2020. That's a notable increase of 17% on last year. Notably, the salary which is AU$522.9k, represents a considerable chunk of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from AU$259m to AU$1.0b, we found that the median CEO total compensation was AU$890k. This suggests that Bell Financial Group remunerates its CEO largely in line with the industry average. Moreover, Alastair Provan also holds AU$9.3m worth of Bell Financial Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	AU$523k	AU$524k	50%
Other	AU$521k	AU$371k	50%
Total Compensation	AU$1.0m	AU$894k	100%

On an industry level, around 72% of total compensation represents salary and 28% is other remuneration. Bell Financial Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Bell Financial Group Limited's Growth Numbers

Bell Financial Group Limited has seen its earnings per share (EPS) increase by 23% a year over the past three years. Its revenue is up 19% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 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 230% 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Bell Financial Group that you should be aware of before investing.

Switching gears from Bell Financial Group, 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.

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