In 2015 Randy Dewey was appointed CEO of Baylin Technologies Inc. (TSE:BYL). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Randy Dewey's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Baylin Technologies Inc. has a market cap of CA$86m, and reported total annual CEO compensation of CA$810k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$425k. We examined a group of similar sized companies, with market capitalizations of below CA$261m. The median CEO total compensation in that group is CA$219k.
It would therefore appear that Baylin Technologies Inc. pays Randy Dewey 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 Baylin Technologies, below.
Is Baylin Technologies Inc. Growing?
Baylin Technologies Inc. has increased its earnings per share (EPS) by an average of 23% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 28%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has Baylin Technologies Inc. Been A Good Investment?
Since shareholders would have lost about 6.5% over three years, some Baylin Technologies Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Baylin Technologies Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Baylin Technologies (free visualization of insider trades).
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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