Barbara Beasley has been the CEO of Beasley Broadcast Group, Inc. (NASDAQ:BBGI) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.
How Does Barbara Beasley's Compensation Compare With Similar Sized Companies?
According to our data, Beasley Broadcast Group, Inc. has a market capitalization of US$86m, and pays its CEO total annual compensation worth US$1.8m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$990k. 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$473k.
As you can see, Barbara Beasley is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Beasley Broadcast Group, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Beasley Broadcast Group, below.
Is Beasley Broadcast Group, Inc. Growing?
Over the last three years Beasley Broadcast Group, Inc. has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). In the last year, its revenue is up 11%.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Beasley Broadcast Group, Inc. Been A Good Investment?
With a three year total loss of 35%, Beasley Broadcast Group, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Beasley Broadcast Group, Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. So you may want to check if insiders are buying Beasley Broadcast Group shares with their own money (free access).
Important note: Beasley Broadcast Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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