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Does Barnwell Industries, Inc.'s (NYSEMKT:BRN) CEO Pay Reflect Performance?

Simply Wall St

Alexander Kinzler has been the CEO of Barnwell Industries, Inc. (NYSEMKT:BRN) 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. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Barnwell Industries

How Does Alexander Kinzler's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Barnwell Industries, Inc. has a market cap of US$4.9m, and reported total annual CEO compensation of US$358k for the year to September 2019. That's actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at US$322k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$545k.

Most shareholders would consider it a positive that Alexander Kinzler takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at Barnwell Industries has changed over time.

AMEX:BRN CEO Compensation, March 1st 2020

Is Barnwell Industries, Inc. Growing?

Barnwell Industries, Inc. has reduced its earnings per share by an average of 104% a year, over the last three years (measured with a line of best fit). Its revenue is up 42% over last year.

The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Barnwell Industries, Inc. Been A Good Investment?

Since shareholders would have lost about 75% over three years, some Barnwell Industries, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

It appears that Barnwell Industries, Inc. remunerates its CEO below most similar sized companies.

Alexander Kinzler is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. So while shareholders shouldn't be overly concerned about CEO compensation, they would probably like to see improved shareholder returns before seeing a pay increase. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Barnwell Industries (free visualization of insider trades).

Important note: Barnwell Industries 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.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.