What Did Bri-Chem Corp.'s (TSE:BRY) CEO Take Home Last Year?
Don Caron has been the CEO of Bri-Chem Corp. (TSE:BRY) since 2009. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Bri-Chem
How Does Don Caron's Compensation Compare With Similar Sized Companies?
Our data indicates that Bri-Chem Corp. is worth CA$3.0m, and total annual CEO compensation is CA$367k. (This figure is for the year to December 2018). Notably, the salary of CA$363k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under CA$265m, and the median CEO total compensation was CA$144k.
It would therefore appear that Bri-Chem Corp. pays Don Caron 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Bri-Chem, below.
Is Bri-Chem Corp. Growing?
On average over the last three years, Bri-Chem Corp. has grown earnings per share (EPS) by 36% each year (using a line of best fit). Its revenue is down -11% over last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Bri-Chem Corp. Been A Good Investment?
With a three year total loss of 38%, Bri-Chem Corp. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount Bri-Chem Corp. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Bri-Chem insiders are buying or selling shares.
Important note: Bri-Chem may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
