In 2015 Bob Pallé was appointed CEO of Blonder Tongue Laboratories Inc (NYSEMKT:BDR). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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.
How Does Bob Pallé’s Compensation Compare With Similar Sized Companies?
Our data indicates that Blonder Tongue Laboratories Inc is worth US$9.7m, and total annual CEO compensation is US$161k. That’s less than last year. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$293k.
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.
You can see a visual representation of the CEO compensation at Blonder Tongue Laboratories, below.
Is Blonder Tongue Laboratories Inc Growing?
Over the last three years Blonder Tongue Laboratories Inc has grown its earnings per share (EPS) by an average of 80% per year. In the last year, its revenue is down -5.4%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Blonder Tongue Laboratories Inc Been A Good Investment?
I think that the total shareholder return of 108%, over three years, would leave most Blonder Tongue Laboratories Inc shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
Blonder Tongue Laboratories Inc is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Bob Pallé deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. So you may want to check if insiders are buying Blonder Tongue Laboratories Inc shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.