This article will reflect on the compensation paid to Ted Dhanik who has served as CEO of engage:BDR Limited (ASX:EN1) since 2017. This analysis will also assess whether engage:BDR pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for engage:BDR
How Does Total Compensation For Ted Dhanik Compare With Other Companies In The Industry?
At the time of writing, our data shows that engage:BDR Limited has a market capitalization of AU$13m, and reported total annual CEO compensation of AU$678k for the year to December 2019. That's just a smallish increase of 3.2% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$338k.
In comparison with other companies in the industry with market capitalizations under AU$268m, the reported median total CEO compensation was AU$535k. This suggests that engage:BDR remunerates its CEO largely in line with the industry average.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | AU$338k | AU$288k | 50% |
| Other | AU$341k | AU$369k | 50% |
| Total Compensation | AU$678k | AU$657k | 100% |
On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. engage:BDR pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
engage:BDR Limited's Growth
Over the past three years, engage:BDR Limited has seen its earnings per share (EPS) grow by 69% per year. It achieved revenue growth of 64% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast 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 engage:BDR Limited Been A Good Investment?
Since shareholders would have lost about 98% over three years, some engage:BDR Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As previously discussed, Ted is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, EPS growth is positive over the same time frame. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for engage:BDR you should be aware of, and 3 of them are significant.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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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About ASX:CTV
Colortv
Colortv Limited operates as an Internet-based marketplace platform and technology solution provider in the United States and internationally.
Mediocre balance sheet and slightly overvalued.
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