How Does Beasley Broadcast Group's (NASDAQ:BBGI) CEO Pay Compare With Company Performance?

This article will reflect on the compensation paid to Barbara Beasley who has served as CEO of Beasley Broadcast Group, Inc. (NASDAQ:BBGI) since 2016. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Beasley Broadcast Group

Comparing Beasley Broadcast Group, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Beasley Broadcast Group, Inc. has a market capitalization of US$43m, and reported total annual CEO compensation of US$1.8m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is US$1.00m, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$1.3m. Hence, we can conclude that Barbara Beasley is remunerated higher than the industry median. Moreover, Barbara Beasley also holds US$1.9m worth of Beasley Broadcast Group stock directly under their own name.

On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. It's interesting to note that Beasley Broadcast Group pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Beasley Broadcast Group, Inc.'s Growth

Over the last three years, Beasley Broadcast Group, Inc. has shrunk its earnings per share by 99% per year. It saw its revenue drop 21% over the last year.

Overall this is not a very positive result for shareholders. 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Beasley Broadcast Group, Inc. Been A Good Investment?

With a three year total loss of 88% for the shareholders, Beasley Broadcast Group, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As previously discussed, Barbara 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. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which is potentially serious) in Beasley Broadcast Group we think you should know about.

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.

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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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