Shareholders May Not Be So Generous With Beam Communications Holdings Limited's (ASX:BCC) CEO Compensation And Here's Why
Key Insights
Beam Communications Holdings to hold its Annual General Meeting on 30th of November
Salary of AU$361.2k is part of CEO Michael Capocchi's total remuneration
The overall pay is 67% above the industry average
Beam Communications Holdings' three-year loss to shareholders was 27% while its EPS grew by 113% over the past three years
Shareholders of Beam Communications Holdings Limited (ASX:BCC) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 30th of November. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.
View our latest analysis for Beam Communications Holdings
How Does Total Compensation For Michael Capocchi Compare With Other Companies In The Industry?
At the time of writing, our data shows that Beam Communications Holdings Limited has a market capitalization of AU$18m, and reported total annual CEO compensation of AU$758k for the year to June 2023. That's a notable increase of 31% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$361k.
For comparison, other companies in the Australia Communications industry with market capitalizations below AU$304m, reported a median total CEO compensation of AU$454k. Accordingly, our analysis reveals that Beam Communications Holdings Limited pays Michael Capocchi north of the industry median. Moreover, Michael Capocchi also holds AU$640k worth of Beam Communications Holdings stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$361k | AU$433k | 48% |
Other | AU$397k | AU$147k | 52% |
Total Compensation | AU$758k | AU$579k | 100% |
On an industry level, around 53% of total compensation represents salary and 47% is other remuneration. Our data reveals that Beam Communications Holdings allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Beam Communications Holdings Limited's Growth
Beam Communications Holdings Limited has seen its earnings per share (EPS) increase by 113% a year over the past three years. In the last year, its revenue is up 67%.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Beam Communications Holdings Limited Been A Good Investment?
Given the total shareholder loss of 27% over three years, many shareholders in Beam Communications Holdings Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Beam Communications Holdings that investors should be aware of in a dynamic business environment.
Switching gears from Beam Communications Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
