In 2016 Simon Lyons was appointed CEO of BNK Banking Corporation Limited (ASX:BBC). 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Simon Lyons's Compensation Compare With Similar Sized Companies?
According to our data, BNK Banking Corporation Limited has a market capitalization of AU$56m, and paid its CEO total annual compensation worth AU$1.0m over the year to June 2019. That's a notable increase of 85% on last year. While we always look at total compensation first, we note that the salary component is less, at AU$430k. We looked at a group of companies with market capitalizations under AU$296m, and the median CEO total compensation was AU$386k.
It would therefore appear that BNK Banking Corporation Limited pays Simon Lyons more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at BNK Banking, below.
Is BNK Banking Corporation Limited Growing?
Over the last three years BNK Banking Corporation Limited has grown its earnings per share (EPS) by an average of 86% per year (using a line of best fit). Its revenue is up 493% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has BNK Banking Corporation Limited Been A Good Investment?
Given the total loss of 32% over three years, many shareholders in BNK Banking Corporation Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared total CEO remuneration at BNK Banking Corporation Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. So shareholders might not feel great about the fact that CEO pay increased on last year. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at BNK Banking.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.