Should You Worry About Beyond International Limited’s (ASX:BYI) CEO Pay?

The CEO of Beyond International Limited (ASX:BYI) is Mikael Borglund. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Beyond International

How Does Mikael Borglund’s Compensation Compare With Similar Sized Companies?

Our data indicates that Beyond International Limited is worth AU$58m, and total annual CEO compensation is AU$854k. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$766k. We took a group of companies with market capitalizations below AU$295m, and calculated the median CEO total compensation to be AU$354k.

Thus we can conclude that Mikael Borglund receives more in total compensation than the median of a group of companies in the same market, and of similar size to Beyond International Limited. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Beyond International, below.

ASX:BYI CEO Compensation, August 19th 2019
ASX:BYI CEO Compensation, August 19th 2019

Is Beyond International Limited Growing?

On average over the last three years, Beyond International Limited has shrunk earnings per share by 80% each year (measured with a line of best fit). In the last year, its revenue is up 1.1%.

Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.

Has Beyond International Limited Been A Good Investment?

Given the total loss of 2.0% over three years, many shareholders in Beyond International Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

We examined the amount Beyond International Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.

Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Beyond International.

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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.

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. Thank you for reading.