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Is Blackline Safety Corp.'s (CVE:BLN) CEO Pay Fair?

Simply Wall St

Cody Slater has been the CEO of Blackline Safety Corp. (CVE:BLN) since 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Blackline Safety

How Does Cody Slater's Compensation Compare With Similar Sized Companies?

According to our data, Blackline Safety Corp. has a market capitalization of CA$294m, and paid its CEO total annual compensation worth CA$215k over the year to October 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$120k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$131m to CA$523m. The median total CEO compensation was CA$878k.

Most shareholders would consider it a positive that Cody Slater takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at Blackline Safety has changed over time.

TSXV:BLN CEO Compensation, December 30th 2019
TSXV:BLN CEO Compensation, December 30th 2019

Is Blackline Safety Corp. Growing?

Over the last three years Blackline Safety Corp. has grown its earnings per share (EPS) by an average of 6.8% per year (using a line of best fit). It achieved revenue growth of 70% over the last year.

I like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. You might want to check this free visual report on analyst forecasts for future earnings.

Has Blackline Safety Corp. Been A Good Investment?

Boasting a total shareholder return of 105% over three years, Blackline Safety Corp. 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...

It appears that Blackline Safety Corp. remunerates its CEO below most similar sized companies.

Cody Slater receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. Shareholders may want to check for free if Blackline Safety insiders are buying or selling shares.

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.