Alastair Provan became the CEO of Bell Financial Group Limited (ASX:BFG) in 1989. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Alastair Provan's Compensation Compare With Similar Sized Companies?
Our data indicates that Bell Financial Group Limited is worth AU$294m, and total annual CEO compensation was reported as AU$794k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at AU$524k. We looked at a group of companies with market capitalizations from AU$148m to AU$593m, and the median CEO total compensation was AU$714k.
That means Alastair Provan receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Bell Financial Group has changed from year to year.
Is Bell Financial Group Limited Growing?
Over the last three years Bell Financial Group Limited has grown its earnings per share (EPS) by an average of 18% per year (using a line of best fit). Its revenue is up 11% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Bell Financial Group Limited Been A Good Investment?
I think that the total shareholder return of 58%, over three years, would leave most Bell Financial Group Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Remuneration for Alastair Provan is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bell Financial Group (free visualization of insider trades).
If you want to buy a stock that is better than Bell Financial Group, this free list of high return, low debt companies is a great place to look.
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