It Looks Like Shareholders Would Probably Approve BluMetric Environmental Inc.'s (CVE:BLM) CEO Compensation Package

We have been pretty impressed with the performance at BluMetric Environmental Inc. (CVE:BLM) recently and CEO Scott MacFabe deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 24 March 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for BluMetric Environmental

Comparing BluMetric Environmental Inc.'s CEO Compensation With the industry

According to our data, BluMetric Environmental Inc. has a market capitalization of CA$13m, and paid its CEO total annual compensation worth CA$283k over the year to September 2020. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at CA$230.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below CA$250m, reported a median total CEO compensation of CA$283k. From this we gather that Scott MacFabe is paid around the median for CEOs in the industry.

Component	2020	2019	Proportion (2020)
Salary	CA$230k	CA$230k	81%
Other	CA$53k	CA$48k	19%
Total Compensation	CA$283k	CA$278k	100%

Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. BluMetric Environmental pays out 81% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at BluMetric Environmental Inc.'s Growth Numbers

Over the past three years, BluMetric Environmental Inc. has seen its earnings per share (EPS) grow by 16% per year. It achieved revenue growth of 13% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 BluMetric Environmental Inc. Been A Good Investment?

Boasting a total shareholder return of 74% over three years, BluMetric Environmental Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 4 warning signs for BluMetric Environmental that investors should be aware of in a dynamic business environment.

Switching gears from BluMetric Environmental, 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.

When trading BluMetric Environmental or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*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 (at) simplywallst.com.