In 2016 Barbara Beasley was appointed CEO of Beasley Broadcast Group, Inc. (NASDAQ:BBGI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Beasley Broadcast Group
How Does Barbara Beasley's Compensation Compare With Similar Sized Companies?
According to our data, Beasley Broadcast Group, Inc. has a market capitalization of US$86m, and paid its CEO total annual compensation worth US$1.8m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$990k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$526k.
It would therefore appear that Beasley Broadcast Group, Inc. pays Barbara Beasley more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Beasley Broadcast Group has changed from year to year.
Is Beasley Broadcast Group, Inc. Growing?
Over the last three years Beasley Broadcast Group, Inc. has shrunk its earnings per share by an average of 26% per year (measured with a line of best fit). It achieved revenue growth of 10% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Beasley Broadcast Group, Inc. Been A Good Investment?
Since shareholders would have lost about 44% over three years, some Beasley Broadcast Group, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Beasley Broadcast Group, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! Shareholders may want to check for free if Beasley Broadcast Group insiders are buying or selling shares.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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