Blackline Safety Corp.'s (TSE:BLN) CEO Compensation Looks Acceptable To Us And Here's Why
Key Insights
Blackline Safety will host its Annual General Meeting on 19th of March
Total pay for CEO Cody Slater includes CA$377.1k salary
The total compensation is 60% less than the average for the industry
Blackline Safety's EPS declined by 18% over the past three years while total shareholder loss over the past three years was 48%
The performance at Blackline Safety Corp. (TSE:BLN) has been rather lacklustre of late and shareholders may be wondering what CEO Cody Slater is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 19th of March. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.
Check out our latest analysis for Blackline Safety
Comparing Blackline Safety Corp.'s CEO Compensation With The Industry
At the time of writing, our data shows that Blackline Safety Corp. has a market capitalization of CA$313m, and reported total annual CEO compensation of CA$585k for the year to October 2023. We note that's an increase of 40% above last year. We note that the salary portion, which stands at CA$377.1k constitutes the majority of total compensation received by the CEO.
On comparing similar companies from the Canadian Commercial Services industry with market caps ranging from CA$135m to CA$540m, we found that the median CEO total compensation was CA$1.5m. Accordingly, Blackline Safety pays its CEO under the industry median. Furthermore, Cody Slater directly owns CA$7.9m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$377k | CA$309k | 64% |
Other | CA$208k | CA$110k | 36% |
Total Compensation | CA$585k | CA$419k | 100% |
Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. Blackline Safety is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Blackline Safety Corp.'s Growth
Over the last three years, Blackline Safety Corp. has shrunk its earnings per share by 18% per year. Its revenue is up 37% over the last year.
The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Blackline Safety Corp. Been A Good Investment?
With a total shareholder return of -48% over three years, Blackline Safety Corp. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
The loss to shareholders over the past three years is certainly concerning. The poor performance of the share price might have something to do with the lack of earnings growth. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.
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 2 warning signs for Blackline Safety (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Blackline Safety, 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
