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Should You Worry About Barnwell Industries, Inc.'s (NYSEMKT:BRN) CEO Pay Cheque?

Simply Wall St

Alexander Kinzler became the CEO of Barnwell Industries, Inc. (NYSEMKT:BRN) in 2016. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Barnwell Industries

How Does Alexander Kinzler's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Barnwell Industries, Inc. has a market cap of US$5.6m, and is paying total annual CEO compensation of US$481k. (This is based on the year to September 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$380k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$498k.

That means Alexander Kinzler receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Barnwell Industries has changed over time.

AMEX:BRN CEO Compensation, September 12th 2019

Is Barnwell Industries, Inc. Growing?

On average over the last three years, Barnwell Industries, Inc. has shrunk earnings per share by 91% each year (measured with a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.

Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Barnwell Industries, Inc. Been A Good Investment?

Given the total loss of 56% over three years, many shareholders in Barnwell Industries, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Alexander Kinzler is paid around the same as most CEOs of similar size companies.

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying Barnwell Industries shares with their own money (free access).

If you want to buy a stock that is better than Barnwell Industries, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.