Is Bluedrop Performance Learning Inc’s (CVE:BPLI) CEO Pay Justified?
Emad Rizkalla became the CEO of Bluedrop Performance Learning Inc (CVE:BPLI) in 2012. 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 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 Bluedrop Performance Learning
How Does Emad Rizkalla’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Bluedrop Performance Learning Inc has a market cap of CA$12m, and is paying total annual CEO compensation of CA$349k. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at CA$249k. We examined a group of similar sized companies, with market capitalizations of below CA$265m. The median CEO compensation in that group is CA$154k.
Thus we can conclude that Emad Rizkalla receives more in total compensation than the median of a group of companies in the same market, and of similar size to Bluedrop Performance Learning Inc. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Bluedrop Performance Learning, below.
Is Bluedrop Performance Learning Inc Growing?
Bluedrop Performance Learning Inc has increased its earnings per share (EPS) by an average of 79% a year, over the last three years Its revenue is down -8.4% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Bluedrop Performance Learning Inc Been A Good Investment?
Most shareholders would probably be pleased with Bluedrop Performance Learning Inc for providing a total return of 67% over three years. 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 Bluedrop Performance Learning Inc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Bluedrop Performance Learning insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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.
