Here's Why Shareholders Will Not Be Complaining About BATM Advanced Communications Ltd.'s (LON:BVC) CEO Pay Packet

We have been pretty impressed with the performance at BATM Advanced Communications Ltd. (LON:BVC) recently and CEO Zvi Marom deserves a mention for their role in it. Coming up to the next AGM on 14 December 2021, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for BATM Advanced Communications

How Does Total Compensation For Zvi Marom Compare With Other Companies In The Industry?

At the time of writing, our data shows that BATM Advanced Communications Ltd. has a market capitalization of UK£352m, and reported total annual CEO compensation of US$957k for the year to December 2020. We note that's an increase of 47% above last year. Notably, the salary which is US$547.0k, represents a considerable chunk of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from UK£151m to UK£605m, we found that the median CEO total compensation was US$830k. This suggests that BATM Advanced Communications remunerates its CEO largely in line with the industry average. Furthermore, Zvi Marom directly owns UK£77m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$547k	US$503k	57%
Other	US$410k	US$150k	43%
Total Compensation	US$957k	US$653k	100%

On an industry level, around 80% of total compensation represents salary and 20% is other remuneration. BATM Advanced Communications sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at BATM Advanced Communications Ltd.'s Growth Numbers

Over the past three years, BATM Advanced Communications Ltd. has seen its earnings per share (EPS) grow by 134% per year. Its revenue is up 23% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 BATM Advanced Communications Ltd. Been A Good Investment?

Most shareholders would probably be pleased with BATM Advanced Communications Ltd. for providing a total return of 74% over three years. 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for BATM Advanced Communications that you should be aware of before investing.

Important note: BATM Advanced Communications 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. 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.