Our View On Beyond International's (ASX:BYI) CEO Pay

Mikael Borglund has been the CEO of Beyond International Limited (ASX:BYI) since 1991, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Beyond International pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Beyond International

How Does Total Compensation For Mikael Borglund Compare With Other Companies In The Industry?

According to our data, Beyond International Limited has a market capitalization of AU$31m, and paid its CEO total annual compensation worth AU$831k over the year to June 2020. We note that's a small decrease of 3.5% on last year. We note that the salary portion, which stands at AU$756.4k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under AU$259m, the reported median total CEO compensation was AU$124k. Accordingly, our analysis reveals that Beyond International Limited pays Mikael Borglund north of the industry median. Moreover, Mikael Borglund also holds AU$1.6m worth of Beyond International stock directly under their own name.

On an industry level, roughly 91% of total compensation represents salary and 9.0% is other remuneration. Beyond International is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Beyond International Limited's Growth Numbers

Over the last three years, Beyond International Limited has not seen its earnings per share change much, though there is a slight positive movement. In the last year, its revenue is up 3.8%.

We're not particularly impressed by the revenue growth, but we're happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. 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 Beyond International Limited Been A Good Investment?

Since shareholders would have lost about 27% over three years, some Beyond International Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we noted earlier, Beyond International pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Over the last three years, shareholder returns have been downright disappointing for Beyond International, and although EPS growth is steady, it hasn't set the world on fire. This doesn't look good when you see that Mikael is earning more than the industry median. All things considered, we believe shareholders would be disappointed to see Mikael's compensation grow without first seeing an improvement in the performance of the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for Beyond International (1 is a bit concerning!) that you should be aware of before investing here.

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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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