Here's Why We Think Blackline Safety Corp.'s (TSE:BLN) CEO Compensation Looks Fair

Key Insights

• Blackline Safety will host its Annual General Meeting on 18th of March
• Salary of CA$414.2k is part of CEO Cody Slater's total remuneration
• The total compensation is 74% less than the average for the industry
• Blackline Safety's EPS grew by 45% over the past three years while total shareholder loss over the past three years was 1.9%

Shareholders may be wondering what CEO Cody Slater plans to do to improve the less than great performance at Blackline Safety Corp. (TSE:BLN) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 18th of March. 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 Blackline Safety

Comparing Blackline Safety Corp.'s CEO Compensation With The Industry

According to our data, Blackline Safety Corp. has a market capitalization of CA$533m, and paid its CEO total annual compensation worth CA$891k over the year to October 2024. Notably, that's an increase of 52% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$414k.

On comparing similar companies from the Canadian Electronic industry with market caps ranging from CA$288m to CA$1.2b, we found that the median CEO total compensation was CA$3.4m. That is to say, Cody Slater is paid under the industry median. Furthermore, Cody Slater directly owns CA$12m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	CA$414k	CA$377k	46%
Other	CA$477k	CA$208k	54%
Total Compensation	CA$891k	CA$585k	100%

On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. In Blackline Safety's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Blackline Safety Corp.'s Growth

Over the past three years, Blackline Safety Corp. has seen its earnings per share (EPS) grow by 45% per year. It achieved revenue growth of 27% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Blackline Safety Corp. Been A Good Investment?

Since shareholders would have lost about 1.9% over three years, some Blackline Safety Corp. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the strong EPS growth recently, the share price has not performed to expectations and it suggests that other factors might be driving it, apart from fundamentals. 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 pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Blackline Safety (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the 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.