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Does Bigblu Broadband plc's (LON:BBB) CEO Pay Reflect Performance?

Simply Wall St

Andrew Walwyn became the CEO of Bigblu Broadband plc (LON:BBB) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Bigblu Broadband

How Does Andrew Walwyn's Compensation Compare With Similar Sized Companies?

Our data indicates that Bigblu Broadband plc is worth UK£64m, and total annual CEO compensation was reported as UK£340k for the year to November 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£229k. We looked at a group of companies with market capitalizations under UK£155m, and the median CEO total compensation was UK£248k.

Thus we can conclude that Andrew Walwyn receives more in total compensation than the median of a group of companies in the same market, and of similar size to Bigblu Broadband plc. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Bigblu Broadband, below.

AIM:BBB CEO Compensation, November 16th 2019

Is Bigblu Broadband plc Growing?

Over the last three years Bigblu Broadband plc has grown its earnings per share (EPS) by an average of 4.3% per year (using a line of best fit). It achieved revenue growth of 26% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. You might want to check this free visual report on analyst forecasts for future earnings.

Has Bigblu Broadband plc Been A Good Investment?

Given the total loss of 4.5% over three years, many shareholders in Bigblu Broadband plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared the total CEO remuneration paid by Bigblu Broadband plc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bigblu Broadband.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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.