In 2010 Roberto Bellini was appointed CEO of BELLUS Health Inc. (TSE:BLU). 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Roberto Bellini's Compensation Compare With Similar Sized Companies?
According to our data, BELLUS Health Inc. has a market capitalization of CA$628m, and paid its CEO total annual compensation worth CA$1.0m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$364k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from CA$261m to CA$1.0b, we found the median CEO total compensation was CA$1.3m.
So Roberto Bellini receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at BELLUS Health has changed from year to year.
Is BELLUS Health Inc. Growing?
BELLUS Health Inc. has reduced its earnings per share by an average of 79% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 27% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.
Has BELLUS Health Inc. Been A Good Investment?
I think that the total shareholder return of 1112%, over three years, would leave most BELLUS Health Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Roberto Bellini is paid around what is normal the leaders of comparable size companies.
We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. Shareholders may want to check for free if BELLUS Health insiders are buying or selling shares.
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.
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