Glen Robinson has been the CEO of Beacon Lighting Group Limited (ASX:BLX) since 2013, 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 Beacon Lighting Group.
Check out our latest analysis for Beacon Lighting Group
How Does Total Compensation For Glen Robinson Compare With Other Companies In The Industry?
Our data indicates that Beacon Lighting Group Limited has a market capitalization of AU$357m, and total annual CEO compensation was reported as AU$519k for the year to June 2020. That's a notable increase of 9.6% on last year. In particular, the salary of AU$346.4k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar companies from the same industry with market caps ranging from AU$132m to AU$529m, we found that the median CEO total compensation was AU$809k. In other words, Beacon Lighting Group pays its CEO lower than the industry median. Furthermore, Glen Robinson directly owns AU$277k worth of shares in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$346k | AU$357k | 67% |
| Other | AU$173k | AU$117k | 33% |
| Total Compensation | AU$519k | AU$474k | 100% |
On an industry level, around 61% of total compensation represents salary and 39% is other remuneration. Although there is a difference in how total compensation is set, Beacon Lighting Group more or less reflects the market in terms of setting the salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Beacon Lighting Group Limited's Growth
Over the past three years, Beacon Lighting Group Limited has seen its earnings per share (EPS) grow by 9.3% per year. In the last year, its revenue is up 2.5%.
We'd prefer higher revenue growth, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Beacon Lighting Group Limited Been A Good Investment?
With a total shareholder return of 20% over three years, Beacon Lighting Group Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
As we touched on above, Beacon Lighting Group Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But, shareholder returns and EPS growth have been unimpressive recently. Consequently, despite CEO compensation being reasonable by all accounts, shareholders will likely want to see more growth before they agree to a potential bump.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Beacon Lighting Group that investors should be aware of in a dynamic business environment.
Important note: Beacon Lighting Group 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.
If you’re looking to trade Beacon Lighting Group, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
Valuation is complex, but we're here to simplify it.
Discover if Beacon Lighting Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisThis 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
About ASX:BLX
Beacon Lighting Group
Beacon Lighting Group Limited retails lighting products in Australia and internationally.
Flawless balance sheet second-rate dividend payer.
