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Is Beasley Broadcast Group, Inc.’s (NASDAQ:BBGI) CEO Pay Justified?

Kristin Rankin

In 2016 Barbara Beasley was appointed CEO of Beasley Broadcast Group, Inc. (NASDAQ:BBGI). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Beasley Broadcast Group

How Does Barbara Beasley’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Beasley Broadcast Group, Inc. has a market cap of US$100m, and is paying total annual CEO compensation of US$2.2m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$739k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$307k.

Thus we can conclude that Barbara Beasley receives more in total compensation than the median of a group of companies in the same market, and of similar size to Beasley Broadcast Group, Inc.. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Beasley Broadcast Group has changed over time.

NasdaqGM:BBGI CEO Compensation December 25th 18

Is Beasley Broadcast Group, Inc. Growing?

On average over the last three years, Beasley Broadcast Group, Inc. has grown earnings per share (EPS) by 67% each year. It achieved revenue growth of 5.8% over the last year.

This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.

Shareholders might be interested in this free visualization of analyst forecasts. .

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

With a total shareholder return of 9.7% over three years, Beasley Broadcast Group, Inc. has done okay by shareholders. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

We examined the amount Beasley Broadcast Group, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven’t been bad. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Beasley Broadcast Group.

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.