Why BMTC Group's (TSE:GBT) CEO Pay Matters

Marie-Berthe Groseillers has been the CEO of BMTC Group Inc. (TSE:GBT) since 2018, 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 BMTC Group.

View our latest analysis for BMTC Group

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

At the time of writing, our data shows that BMTC Group Inc. has a market capitalization of CA$437m, and reported total annual CEO compensation of CA$819k for the year to January 2020. That's a notable decrease of 42% on last year. Notably, the salary which is CA$560.0k, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between CA$257m and CA$1.0b, we discovered that the median CEO total compensation of that group was CA$1.2m. In other words, BMTC Group pays its CEO lower than the industry median. What's more, Marie-Berthe Groseillers holds CA$666k worth of shares in the company in their own name.

On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. There isn't a significant difference between BMTC Group and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

BMTC Group Inc.'s Growth

BMTC Group Inc. has reduced its earnings per share by 1.8% a year over the last three years. Its revenue is down 11% over the previous year.

Its a bit disappointing to see that the company has failed to grow its EPS. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has BMTC Group Inc. Been A Good Investment?

Since shareholders would have lost about 18% over three years, some BMTC Group Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we touched on above, BMTC Group Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. It's tough to say that Marie-Berthe is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for BMTC Group (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

Switching gears from BMTC Group, 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.

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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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