In 2015 Frank Celli was appointed CEO of BioHiTech Global, Inc. (NASDAQ:BHTG). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Frank Celli's Compensation Compare With Similar Sized Companies?
Our data indicates that BioHiTech Global, Inc. is worth US$33m, and total annual CEO compensation was reported as US$410k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$300k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$523k.
So Frank Celli receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at BioHiTech Global has changed from year to year.
Is BioHiTech Global, Inc. Growing?
Over the last three years BioHiTech Global, Inc. has grown its earnings per share (EPS) by an average of 3.3% per year (using a line of best fit). It achieved revenue growth of 20% over the last year.
This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. You might want to check this free visual report on analyst forecasts for future earnings.
Has BioHiTech Global, Inc. Been A Good Investment?
With a three year total loss of 16%, BioHiTech Global, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Frank Celli is paid around what is normal the leaders of comparable size companies.
We would like to see somewhat stronger per share growth. And shareholder returns have been disappointing over the last three years. So it would take a bold person to suggest the pay is too modest. Shareholders may want to check for free if BioHiTech Global insiders are buying or selling shares.
Important note: BioHiTech Global 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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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. Thank you for reading.