In 2014 Randy MacEwen was appointed CEO of Ballard Power Systems Inc. (TSE:BLDP). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Randy MacEwen's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Ballard Power Systems Inc. has a market cap of CA$1.6b, and reported total annual CEO compensation of US$2.0m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$573k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from CA$529m to CA$2.1b, and discovered that the median CEO total compensation of that group was CA$2.1m.
So Randy MacEwen is paid around the average of the companies we looked at. 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 Ballard Power Systems has changed from year to year.
Is Ballard Power Systems Inc. Growing?
Ballard Power Systems Inc. has reduced its earnings per share by an average of 12% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 24% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Ballard Power Systems Inc. Been A Good Investment?
Most shareholders would probably be pleased with Ballard Power Systems Inc. for providing a total return of 104% over three years. 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.
Randy MacEwen is paid around the same as most CEOs of similar size companies.
We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. Shareholders may want to check for free if Ballard Power Systems insiders are buying or selling shares.
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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