Stock Analysis

It May Be Possible That Blackline Safety Corp.'s (TSE:BLN) CEO Compensation Could Get Bumped Up

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Shareholders will be pleased by the robust performance of Blackline Safety Corp. (TSE:BLN) recently and this will be kept in mind in the upcoming AGM on 22 March 2022. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

See our latest analysis for Blackline Safety

Comparing Blackline Safety Corp.'s CEO Compensation With the industry

Our data indicates that Blackline Safety Corp. has a market capitalization of CA$382m, and total annual CEO compensation was reported as CA$351k for the year to October 2021. Notably, that's an increase of 31% over the year before. In particular, the salary of CA$237.8k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between CA$128m and CA$512m had a median total CEO compensation of CA$1.3m. That is to say, Cody Slater is paid under the industry median. What's more, Cody Slater holds CA$9.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20212020Proportion (2021)
Salary CA$238k CA$185k 68%
Other CA$113k CA$82k 32%
Total CompensationCA$351k CA$267k100%

Talking in terms of the industry, salary represented approximately 64% of total compensation out of all the companies we analyzed, while other remuneration made up 36% of the pie. There isn't a significant difference between Blackline Safety and the broader market, in terms of salary allocation in the overall compensation package. 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.

TSX:BLN CEO Compensation March 16th 2022

A Look at Blackline Safety Corp.'s Growth Numbers

Over the last three years, Blackline Safety Corp. has shrunk its earnings per share by 35% per year. Its revenue is up 42% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Blackline Safety Corp. Been A Good Investment?

With a total shareholder return of 10% over three years, Blackline Safety Corp. 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...

The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 Blackline Safety (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

Switching gears from Blackline Safety, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Valuation is complex, but we're helping make it simple.

Find out whether Blackline Safety is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.