We Think Some Shareholders May Hesitate To Increase Bigblu Broadband plc's (LON:BBB) CEO Compensation

Under the guidance of CEO Andrew Walwyn, Bigblu Broadband plc (LON:BBB) has performed reasonably well recently. As shareholders go into the upcoming AGM on 30 September 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Bigblu Broadband

How Does Total Compensation For Andrew Walwyn Compare With Other Companies In The Industry?

At the time of writing, our data shows that Bigblu Broadband plc has a market capitalization of UK£71m, and reported total annual CEO compensation of UK£477k for the year to November 2020. That's a notable increase of 50% on last year. We note that the salary of UK£268.0k makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below UK£146m, reported a median total CEO compensation of UK£248k. Accordingly, our analysis reveals that Bigblu Broadband plc pays Andrew Walwyn north of the industry median. What's more, Andrew Walwyn holds UK£3.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	UK£268k	UK£244k	56%
Other	UK£209k	UK£73k	44%
Total Compensation	UK£477k	UK£317k	100%

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. Bigblu Broadband is paying a higher share of its remuneration through a 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 Bigblu Broadband plc's Growth Numbers

Bigblu Broadband plc's earnings per share (EPS) grew 63% per year over the last three years. Its revenue is up 331% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Bigblu Broadband plc Been A Good Investment?

Bigblu Broadband plc has not done too badly by shareholders, with a total return of 8.8%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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. We've identified 2 warning signs for Bigblu Broadband that investors should be aware of in a dynamic business environment.

Switching gears from Bigblu Broadband, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.
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