What We Learned About Beyond International's (ASX:BYI) CEO Compensation

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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Beyond International.

View 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$33m, and paid its CEO total annual compensation worth AU$831k over the year to June 2020. That's a slightly lower by 3.5% over the previous year. Notably, the salary which is AU$756.4k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below AU$281m, reported a median total CEO compensation of AU$248k. Accordingly, our analysis reveals that Beyond International Limited pays Mikael Borglund north of the industry median. Furthermore, Mikael Borglund directly owns AU$1.7m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 90% of total compensation represents salary and 10% is other remuneration. There isn't a significant difference between Beyond International and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Beyond International Limited's Growth Numbers

Earnings per share at Beyond International Limited are much the same as they were three years ago, albeit with slightly higher. It achieved revenue growth of 3.8% over the last year.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Beyond International Limited Been A Good Investment?

With a three year total loss of 14% for the shareholders, Beyond International Limited would certainly have some dissatisfied shareholders. 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 great when you consider Mikael is taking home compensation north of the industry average. 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Beyond International (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Important note: Beyond International is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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