David Breeze is the CEO of BPH Energy Limited (ASX:BPH). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does David Breeze's Compensation Compare With Similar Sized Companies?
Our data indicates that BPH Energy Limited is worth AU$3.3m, and total annual CEO compensation was reported as AU$148k for the year to June 2019. Notably, the salary of AU$148k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below AU$290m, and calculated the median CEO total compensation to be AU$380k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at BPH Energy has changed from year to year.
Is BPH Energy Limited Growing?
Over the last three years BPH Energy Limited has grown its earnings per share (EPS) by an average of 28% per year (using a line of best fit). It achieved revenue growth of 18% over the 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 BPH Energy Limited Been A Good Investment?
With a three year total loss of 73%, BPH Energy Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
It appears that BPH Energy Limited remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. We're not critical of the remuneration David Breeze receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. So you may want to check if insiders are buying BPH Energy shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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