This Is Why BMTC Group Inc.'s (TSE:GBT) CEO Compensation Looks Appropriate

The performance at BMTC Group Inc. (TSE:GBT) has been rather lacklustre of late and shareholders may be wondering what CEO Marie-Berthe Groseillers is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 10 June 2021. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out our latest analysis for BMTC Group

Comparing BMTC Group Inc.'s CEO Compensation With the industry

Our data indicates that BMTC Group Inc. has a market capitalization of CA$466m, and total annual CEO compensation was reported as CA$967k for the year to January 2021. Notably, that's an increase of 18% over the year before. In particular, the salary of CA$580.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between CA$242m and CA$969m had a median total CEO compensation of CA$2.6m. That is to say, Marie-Berthe Groseillers is paid under the industry median. What's more, Marie-Berthe Groseillers holds CA$941k worth of shares in the company in their own name.

Component	2021	2020	Proportion (2021)
Salary	CA$580k	CA$560k	60%
Other	CA$387k	CA$259k	40%
Total Compensation	CA$967k	CA$819k	100%

On an industry level, roughly 51% of total compensation represents salary and 49% is other remuneration. According to our research, BMTC Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at BMTC Group Inc.'s Growth Numbers

BMTC Group Inc.'s earnings per share (EPS) grew 8.8% per year over the last three years. In the last year, its revenue is down 9.8%.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 BMTC Group Inc. Been A Good Investment?

Given the total shareholder loss of 5.0% over three years, many shareholders in BMTC Group Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

It may not be surprising to some that the recent weak performance in the share price may be driven in part by rather flat EPS growth. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board and assess if the board's plan is likely to improve company performance.

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. That's why we did some digging and identified 1 warning sign for BMTC Group that you should be aware of before investing.

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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