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Is Bridgeline Digital, Inc.’s (NASDAQ:BLIN) CEO Pay Fair?

Kyle Sanford

Ari Kahn has been the CEO of Bridgeline Digital, Inc. (NASDAQ:BLIN) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.

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How Does Ari Kahn’s Compensation Compare With Similar Sized Companies?

Our data indicates that Bridgeline Digital, Inc. is worth US$3.7m, and total annual CEO compensation is US$367k. (This is based on the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$300k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$300k.

So Ari Kahn receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Bridgeline Digital has changed from year to year.

NasdaqCM:BLIN CEO Compensation January 21st 19

Is Bridgeline Digital, Inc. Growing?

Over the last three years Bridgeline Digital, Inc. has grown its earnings per share (EPS) by an average of 104% per year (using a line of best fit). Its revenue is down -17% over last year.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.

We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Bridgeline Digital, Inc. Been A Good Investment?

Given the total loss of 94% over three years, many shareholders in Bridgeline Digital, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

Remuneration for Ari Kahn is close enough to the median pay for a CEO of a similar sized company .

We’d say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. Shareholders may want to check for free if Bridgeline Digital insiders are buying or selling shares.

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

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.