Michael Capocchi has been the CEO of Beam Communications Holdings Limited (ASX:BCC) since 2008, 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 Beam Communications Holdings.
How Does Total Compensation For Michael Capocchi Compare With Other Companies In The Industry?
At the time of writing, our data shows that Beam Communications Holdings Limited has a market capitalization of AU$25m, and reported total annual CEO compensation of AU$701k for the year to June 2020. We note that's a small decrease of 4.7% on last year. We note that the salary portion, which stands at AU$448.6k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below AU$260m, reported a median total CEO compensation of AU$403k. Hence, we can conclude that Michael Capocchi is remunerated higher than the industry median. Moreover, Michael Capocchi also holds AU$854k worth of Beam Communications Holdings stock directly under their own name.
Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. Our data reveals that Beam Communications Holdings allocates salary more or less in line with the wider market. 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.
A Look at Beam Communications Holdings Limited's Growth Numbers
Beam Communications Holdings Limited has seen its earnings per share (EPS) increase by 17% a year over the past three years. Its revenue is down 16% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 Beam Communications Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with Beam Communications Holdings Limited for providing a total return of 89% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
As we noted earlier, Beam Communications Holdings pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Michael's performance creates value for the company.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Beam Communications Holdings (1 is concerning!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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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