Our View On BATM Advanced Communications' (LON:BVC) CEO Pay
The CEO of BATM Advanced Communications Ltd. (LON:BVC) is Zvi Marom, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for BATM Advanced Communications
Comparing BATM Advanced Communications Ltd.'s CEO Compensation With the industry
Our data indicates that BATM Advanced Communications Ltd. has a market capitalization of UK£586m, and total annual CEO compensation was reported as US$653k for the year to December 2019. That's a modest increase of 6.7% on the prior year. In particular, the salary of US$503.0k, makes up a huge portion of the total compensation being paid to the CEO.
On examining similar-sized companies in the industry with market capitalizations between UK£300m and UK£1.2b, we discovered that the median CEO total compensation of that group was US$937k. In other words, BATM Advanced Communications pays its CEO lower than the industry median. Furthermore, Zvi Marom directly owns UK£129m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$503k | US$516k | 77% |
Other | US$150k | US$96k | 23% |
Total Compensation | US$653k | US$612k | 100% |
Speaking on an industry level, nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. Our data reveals that BATM Advanced Communications allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
BATM Advanced Communications Ltd.'s Growth
Over the past three years, BATM Advanced Communications Ltd. has seen its earnings per share (EPS) grow by 99% per year. Its revenue is up 23% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has BATM Advanced Communications Ltd. Been A Good Investment?
We think that the total shareholder return of 629%, over three years, would leave most BATM Advanced Communications Ltd. shareholders smiling. 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.
To Conclude...
As we noted earlier, BATM Advanced Communications pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Considering robust EPS growth, we believe Zvi to be modestly paid. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for BATM Advanced Communications that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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. 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.
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