We think Beam Communications Holdings Limited's (ASX:BCC) CEO May Struggle To See Much Of A Pay Rise This Year

CEO Michael Capocchi has done a decent job of delivering relatively good performance at Beam Communications Holdings Limited (ASX:BCC) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 30 November 2022. Here is our take on why we think the CEO compensation looks appropriate.

Check out the opportunities and risks within the AU Communications industry.

How Does Total Compensation For Michael Capocchi Compare With Other Companies In The Industry?

According to our data, Beam Communications Holdings Limited has a market capitalization of AU$22m, and paid its CEO total annual compensation worth AU$579k over the year to June 2022. Notably, that's a decrease of 15% over the year before. We note that the salary portion, which stands at AU$432.5k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$302m, we found that the median total CEO compensation was AU$499k. So it looks like Beam Communications Holdings compensates Michael Capocchi in line with the median for the industry. Furthermore, Michael Capocchi directly owns AU$773k worth of shares in the company.

Component	2022	2021	Proportion (2022)
Salary	AU$433k	AU$441k	75%
Other	AU$147k	AU$237k	25%
Total Compensation	AU$579k	AU$679k	100%

Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. It's interesting to note that Beam Communications Holdings pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Beam Communications Holdings Limited's Growth

Beam Communications Holdings Limited has seen its earnings per share (EPS) increase by 34% a year over the past three years. It achieved revenue growth of 28% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Beam Communications Holdings Limited Been A Good Investment?

With a total shareholder return of 2.0% over three years, Beam Communications Holdings Limited has done okay by shareholders, but there's always room for improvement. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Beam Communications Holdings that investors should think about before committing capital to this stock.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.