How Much Is Bel Fuse Inc. (NASDAQ:BELF.B) CEO Getting Paid?

Daniel Bernstein has been the CEO of Bel Fuse Inc. (NASDAQ:BELF.B) since 2001, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Bel Fuse.

See our latest analysis for Bel Fuse

Comparing Bel Fuse Inc.'s CEO Compensation With the industry

Our data indicates that Bel Fuse Inc. has a market capitalization of US$188m, and total annual CEO compensation was reported as US$830k for the year to December 2019. Notably, that's an increase of 18% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$400k.

On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$951k. From this we gather that Daniel Bernstein is paid around the median for CEOs in the industry. What's more, Daniel Bernstein holds US$8.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 33% of total compensation represents salary and 67% is other remuneration. Bel Fuse pays out 48% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Bel Fuse Inc.'s Growth Numbers

Over the last three years, Bel Fuse Inc. has shrunk its earnings per share by 39% per year. In the last year, its revenue is down 11%.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Bel Fuse Inc. Been A Good Investment?

With a three year total loss of 40% for the shareholders, Bel Fuse Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we touched on above, Bel Fuse Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, EPS growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Bel Fuse (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

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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