Bob Pallé became the CEO of Blonder Tongue Laboratories, Inc. (NYSEMKT:BDR) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Bob Pallé's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Blonder Tongue Laboratories, Inc. has a market cap of US$6.2m, and reported total annual CEO compensation of US$170k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$60k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$526k.
A first glance this seems like a real positive for shareholders, since Bob Pallé is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Blonder Tongue Laboratories has changed from year to year.
Is Blonder Tongue Laboratories, Inc. Growing?
Blonder Tongue Laboratories, Inc. has increased its earnings per share (EPS) by an average of 111% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 7.3%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Blonder Tongue Laboratories, Inc. Been A Good Investment?
I think that the total shareholder return of 39%, over three years, would leave most Blonder Tongue Laboratories, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It looks like Blonder Tongue Laboratories, Inc. pays its CEO less than similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Bob Pallé deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Blonder Tongue Laboratories (free visualization of insider trades).
If you want to buy a stock that is better than Blonder Tongue Laboratories, this free list of high return, low debt companies is a great place to look.
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