The CEO of Bod Australia Limited (ASX:BDA) is Jo Patterson, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for Bod Australia
How Does Total Compensation For Jo Patterson Compare With Other Companies In The Industry?
According to our data, Bod Australia Limited has a market capitalization of AU$49m, and paid its CEO total annual compensation worth AU$421k over the year to June 2020. We note that's an increase of 24% above last year. In particular, the salary of AU$315.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under AU$254m, the reported median total CEO compensation was AU$400k. This suggests that Bod Australia remunerates its CEO largely in line with the industry average. What's more, Jo Patterson holds AU$2.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$315k | AU$300k | 75% |
| Other | AU$106k | AU$39k | 25% |
| Total Compensation | AU$421k | AU$339k | 100% |
Talking in terms of the industry, salary represented approximately 67% of total compensation out of all the companies we analyzed, while other remuneration made up 33% of the pie. Bod Australia is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Bod Australia Limited's Growth
Over the last three years, Bod Australia Limited has not seen its earnings per share change much, though there is a slight positive movement. Its revenue is up 363% over the last year.
It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Bod Australia Limited Been A Good Investment?
Given the total shareholder loss of 6.3% over three years, many shareholders in Bod Australia Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As we touched on above, Bod Australia Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, Bod Australia is suffering from adverse shareholder returns and althoughEPS have grown over the past three years, they have not been extraordinary. Although we wouldn't say CEO compensation is exceptionally high, it isn't very low either. Shareholders might want to see substantial improvements in returns before agreeing that Jo deserves a raise.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 6 warning signs for Bod Australia you should be aware of, and 1 of them is potentially serious.
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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About ASX:BOD
Bod Science
Bod Science Limited operates as a cannabis focused drug development and product innovation company in Australia, the United Kingdom, the European Union, and the United States.
Medium and slightly overvalued.
