Guy Maine has been the CEO of BidEnergy Limited (ASX:BID) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for BidEnergy.
How Does Total Compensation For Guy Maine Compare With Other Companies In The Industry?
According to our data, BidEnergy Limited has a market capitalization of AU$128m, and paid its CEO total annual compensation worth AU$650k over the year to June 2020. Notably, that's an increase of 33% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$300k.
For comparison, other companies in the industry with market capitalizations below AU$278m, reported a median total CEO compensation of AU$339k. This suggests that Guy Maine is paid more than the median for the industry. Moreover, Guy Maine also holds AU$183k worth of BidEnergy stock directly under their own name.
On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. BidEnergy sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
BidEnergy Limited's Growth
BidEnergy Limited's earnings per share (EPS) grew 26% per year over the last three years. Its revenue is up 77% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has BidEnergy Limited Been A Good Investment?
Most shareholders would probably be pleased with BidEnergy Limited for providing a total return of 548% 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.
As we touched on above, BidEnergy Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, BidEnergy has produced strong EPS growth and shareholder returns over the last three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. And given most shareholders are probably very happy with recent returns, they might even think that Guy deserves a raise!
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for BidEnergy that investors should think about before committing capital to this stock.
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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