It Looks Like Shareholders Would Probably Approve Brightcove Inc.'s (NASDAQ:BCOV) CEO Compensation Package

The performance at Brightcove Inc. (NASDAQ:BCOV) has been quite strong recently and CEO Jeff Ray has played a role in it. Coming up to the next AGM on 11 May 2021, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Brightcove

How Does Total Compensation For Jeff Ray Compare With Other Companies In The Industry?

According to our data, Brightcove Inc. has a market capitalization of US$601m, and paid its CEO total annual compensation worth US$2.0m over the year to December 2020. We note that's an increase of 37% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$400k.

On examining similar-sized companies in the industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$1.9m. From this we gather that Jeff Ray is paid around the median for CEOs in the industry. What's more, Jeff Ray holds US$2.4m 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	US$400k	US$400k	20%
Other	US$1.6m	US$1.0m	80%
Total Compensation	US$2.0m	US$1.4m	100%

Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. Brightcove is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Brightcove Inc.'s Growth

Brightcove Inc. has seen its earnings per share (EPS) increase by 24% a year over the past three years. It achieved revenue growth of 8.6% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Brightcove Inc. Been A Good Investment?

Most shareholders would probably be pleased with Brightcove Inc. for providing a total return of 44% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Brightcove that investors should think about before committing capital to this stock.

Important note: Brightcove 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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