How Much Is Baylin Technologies Inc. (TSE:BYL) Paying Its CEO?

Randy Dewey became the CEO of Baylin Technologies Inc. (TSE:BYL) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Baylin Technologies pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Baylin Technologies

How Does Total Compensation For Randy Dewey Compare With Other Companies In The Industry?

According to our data, Baylin Technologies Inc. has a market capitalization of CA$36m, and paid its CEO total annual compensation worth CA$1.3m over the year to December 2019. We note that's an increase of 54% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$425k.

In comparison with other companies in the industry with market capitalizations under CA$262m, the reported median total CEO compensation was CA$400k. Accordingly, our analysis reveals that Baylin Technologies Inc. pays Randy Dewey north of the industry median. Moreover, Randy Dewey also holds CA$191k worth of Baylin Technologies stock directly under their own name.

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. It's interesting to note that Baylin Technologies allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Baylin Technologies Inc.'s Growth Numbers

Baylin Technologies Inc. has reduced its earnings per share by 43% a year over the last three years. It saw its revenue drop 22% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Baylin Technologies Inc. Been A Good Investment?

Given the total shareholder loss of 67% over three years, many shareholders in Baylin Technologies Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, Randy is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. Arguably worse, we've been waiting for positive EPS growth for the last three years. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Baylin Technologies that you should be aware of before investing.

Important note: Baylin Technologies is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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