What Can We Conclude About Bell Financial Group's (ASX:BFG) CEO Pay?

Alastair Provan has been the CEO of Bell Financial Group Limited (ASX:BFG) since 1989, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Bell Financial Group.

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$625m, 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. In particular, the salary of AU$522.9k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from AU$254m to AU$1.0b, we found that the median CEO total compensation was AU$942k. This suggests that Bell Financial Group remunerates its CEO largely in line with the industry average. Moreover, Alastair Provan also holds AU$9.7m 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.

Talking in terms of the industry, salary represented approximately 70% of total compensation out of all the companies we analyzed, while other remuneration made up 30% of the pie. 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's earnings per share (EPS) grew 23% per year over the last three years. It achieved revenue growth of 19% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Bell Financial Group Limited Been A Good Investment?

Boasting a total shareholder return of 208% over three years, Bell Financial Group Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As previously discussed, Alastair is compensated close to the median for companies of its size, and which belong to the same industry. The company is growing EPS and total shareholder returns have been pleasing. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.

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. We did our research and spotted 2 warning signs for Bell Financial Group that investors should look into moving forward.

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.

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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. 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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