Is Baylin Technologies Inc.’s (TSE:BYL) CEO Paid At A Competitive Rate?

Randy Dewey has been the CEO of Baylin Technologies Inc. (TSE:BYL) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Baylin Technologies

How Does Randy Dewey’s Compensation Compare With Similar Sized Companies?

Our data indicates that Baylin Technologies Inc. is worth CA$160m, and total annual CEO compensation is CA$828k. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$428k. We looked at a group of companies with market capitalizations under CA$268m, and the median CEO total compensation was CA$145k.

It would therefore appear that Baylin Technologies Inc. pays Randy Dewey more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Baylin Technologies has changed from year to year.

TSX:BYL CEO Compensation, March 13th 2019
TSX:BYL CEO Compensation, March 13th 2019

Is Baylin Technologies Inc. Growing?

On average over the last three years, Baylin Technologies Inc. has grown earnings per share (EPS) by 73% each year (using a line of best fit). It achieved revenue growth of 43% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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?

Boasting a total shareholder return of 99% over three years, Baylin Technologies Inc. has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

We compared total CEO remuneration at Baylin Technologies Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Baylin Technologies shares with their own money (free access).

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.