U.S. Markets closed
  • S&P 500

    3,269.96
    -40.15 (-1.21%)
     
  • Dow 30

    26,501.60
    -157.51 (-0.59%)
     
  • Nasdaq

    10,911.59
    -274.00 (-2.45%)
     
  • Russell 2000

    1,538.48
    -23.10 (-1.48%)
     
  • Crude Oil

    35.72
    -0.45 (-1.24%)
     
  • Gold

    1,878.80
    +10.80 (+0.58%)
     
  • Silver

    23.72
    +0.35 (+1.52%)
     
  • EUR/USD

    1.1641
    -0.0037 (-0.3143%)
     
  • 10-Yr Bond

    0.8600
    +0.0250 (+2.99%)
     
  • Vix

    38.02
    +0.43 (+1.14%)
     
  • GBP/USD

    1.2953
    +0.0030 (+0.2319%)
     
  • USD/JPY

    104.6350
    +0.0250 (+0.0239%)
     
  • BTC-USD

    13,778.88
    -12.00 (-0.09%)
     
  • CMC Crypto 200

    265.42
    +1.78 (+0.68%)
     
  • FTSE 100

    5,577.27
    -4.48 (-0.08%)
     
  • Nikkei 225

    22,977.13
    -354.81 (-1.52%)
     

Our Take On Beach Energy's (ASX:BPT) CEO Salary

Simply Wall St
·4 mins read

Matt Kay became the CEO of Beach Energy Limited (ASX:BPT) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Beach Energy pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Beach Energy

Comparing Beach Energy Limited's CEO Compensation With the industry

Our data indicates that Beach Energy Limited has a market capitalization of AU$2.9b, and total annual CEO compensation was reported as AU$2.6m for the year to June 2020. Notably, that's a decrease of 10% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$1.3m.

In comparison with other companies in the industry with market capitalizations ranging from AU$1.4b to AU$4.5b, the reported median CEO total compensation was AU$2.8m. This suggests that Beach Energy remunerates its CEO largely in line with the industry average. Furthermore, Matt Kay directly owns AU$4.9m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2020

2019

Proportion (2020)

Salary

AU$1.3m

AU$1.2m

49%

Other

AU$1.3m

AU$1.7m

51%

Total Compensation

AU$2.6m

AU$2.9m

100%

On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. In Beach Energy's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

A Look at Beach Energy Limited's Growth Numbers

Over the past three years, Beach Energy Limited has seen its earnings per share (EPS) grow by 1.9% per year. In the last year, its revenue is down 17%.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Beach Energy Limited Been A Good Investment?

Boasting a total shareholder return of 52% over three years, Beach Energy Limited has done well by shareholders. 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...

As we touched on above, Beach Energy Limited 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. However, the company's EPS growth numbers over the last three years is not that impressive. Meanwhile, shareholder returns have remained positive over the same time frame. So while shareholders shouldn't be overly concerned about CEO compensation, we suspect most would prefer to see improved performance, before a bump in pay.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for Beach Energy you should be aware of, and 1 of them can't be ignored.

Switching gears from Beach Energy, 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.