How Is Bisichi's (LON:BISI) CEO Paid Relative To Peers?

The CEO of Bisichi PLC (LON:BISI) is Andrew Heller, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Bisichi pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Bisichi

Comparing Bisichi PLC's CEO Compensation With the industry

At the time of writing, our data shows that Bisichi PLC has a market capitalization of UK£6.4m, and reported total annual CEO compensation of UK£1.0m for the year to December 2019. That's a slight decrease of 3.5% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£495k.

On comparing similar-sized companies in the industry with market capitalizations below UK£149m, we found that the median total CEO compensation was UK£284k. This suggests that Andrew Heller is paid more than the median for the industry. What's more, Andrew Heller holds UK£471k worth of shares in the company in their own name.

Talking in terms of the industry, salary represented approximately 65% of total compensation out of all the companies we analyzed, while other remuneration made up 35% of the pie. Bisichi pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Bisichi PLC's Growth Numbers

Bisichi PLC has reduced its earnings per share by 26% a year over the last three years. In the last year, its revenue is down 30%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Bisichi PLC Been A Good Investment?

Since shareholders would have lost about 4.4% over three years, some Bisichi PLC investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As previously discussed, Andrew is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. Add to that declining EPS growth, and you have the perfect recipe for shareholder irritation. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which is significant) in Bisichi we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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