Key Insights
- BCE to hold its Annual General Meeting on 8th of May
- CEO Mirko Bibic's total compensation includes salary of CA$1.40m
- The total compensation is 39% less than the average for the industry
- BCE's EPS declined by 61% over the past three years while total shareholder loss over the past three years was 44%
Performance at BCE Inc. (TSE:BCE) has not been particularly rosy recently and shareholders will likely be holding CEO Mirko Bibic and the board accountable for this. The next AGM coming up on 8th of May will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. From our analysis below, we think CEO compensation looks appropriate for now.
See our latest analysis for BCE
How Does Total Compensation For Mirko Bibic Compare With Other Companies In The Industry?
According to our data, BCE Inc. has a market capitalization of CA$28b, and paid its CEO total annual compensation worth CA$13m over the year to December 2024. That's a slight decrease of 4.5% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$1.4m.
For comparison, other companies in the Canadian Telecom industry with market capitalizations above CA$11b, reported a median total CEO compensation of CA$21m. In other words, BCE pays its CEO lower than the industry median. Furthermore, Mirko Bibic directly owns CA$3.7m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | CA$1.4m | CA$1.4m | 11% |
| Other | CA$11m | CA$12m | 89% |
| Total Compensation | CA$13m | CA$13m | 100% |
On an industry level, roughly 13% of total compensation represents salary and 87% is other remuneration. In BCE's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
BCE Inc.'s Growth
Over the last three years, BCE Inc. has shrunk its earnings per share by 61% per year. Its revenue is down 1.1% over the previous year.
Few shareholders would be pleased to read that EPS have declined. 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has BCE Inc. Been A Good Investment?
Few BCE Inc. shareholders would feel satisfied with the return of -44% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for BCE you should be aware of, and 1 of them can't be ignored.
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.
Valuation is complex, but we're here to simplify it.
Discover if BCE might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.