Is Bisalloy Steel Group Limited's (ASX:BIS) CEO Salary Justified?
Greg Albert has been the CEO of Bisalloy Steel Group Limited (ASX:BIS) since 2016. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Bisalloy Steel Group
How Does Greg Albert's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Bisalloy Steel Group Limited has a market cap of AU$33m, and reported total annual CEO compensation of AU$1.0m for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$575k. We looked at a group of companies with market capitalizations under AU$318m, and the median CEO total compensation was AU$392k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. Our data reveals that Bisalloy Steel Group allocates salary in line with the wider market.
Thus we can conclude that Greg Albert receives more in total compensation than the median of a group of companies in the same market, and of similar size to Bisalloy Steel Group Limited. 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 Bisalloy Steel Group has changed over time.
Is Bisalloy Steel Group Limited Growing?
On average over the last three years, Bisalloy Steel Group Limited has seen earnings per share (EPS) move in a favourable direction by 39% each year (using a line of best fit). It achieved revenue growth of 5.8% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Bisalloy Steel Group Limited Been A Good Investment?
Boasting a total shareholder return of 95% over three years, Bisalloy Steel Group Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We compared the total CEO remuneration paid by Bisalloy Steel Group Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Moving away from CEO compensation for the moment, we've identified 3 warning signs for Bisalloy Steel Group that you should be aware of before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
