In 2015 Ted Harris was appointed CEO of Balchem Corporation (NASDAQ:BCPC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Ted Harris's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Balchem Corporation has a market cap of US$2.7b, and is paying total annual CEO compensation of US$3.3m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$800k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.
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 Balchem, below.
Is Balchem Corporation Growing?
Over the last three years Balchem Corporation has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has Balchem Corporation Been A Good Investment?
With a total shareholder return of 29% over three years, Balchem Corporation shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
It appears that Balchem Corporation remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The total shareholder return might not be amazing, but that doesn't mean that Ted Harris is paid too much.
It's good to see reasonable payment of the CEO, even while the business improves. It would be an additional positive if insiders are buying shares. Shareholders may want to check for free if Balchem insiders are buying or selling shares.
If you want to buy a stock that is better than Balchem, this free list of high return, low debt companies is a great place to look.
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