Bob Pallé became the CEO of Blonder Tongue Laboratories, Inc. (NYSEMKT:BDR) in 2015. 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 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 Bob Pallé's Compensation Compare With Similar Sized Companies?
Our data indicates that Blonder Tongue Laboratories, Inc. is worth US$9.4m, and total annual CEO compensation is US$161k. (This is based on the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$42k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$431k.
A first glance this seems like a real positive for shareholders, since Bob Pallé is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Blonder Tongue Laboratories has changed over time.
Is Blonder Tongue Laboratories, Inc. Growing?
Blonder Tongue Laboratories, Inc. has increased its earnings per share (EPS) by an average of 98% a year, over the last three years (using a line of best fit). Its revenue is down -6.8% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Blonder Tongue Laboratories, Inc. Been A Good Investment?
I think that the total shareholder return of 140%, over three years, would leave most Blonder Tongue Laboratories, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Blonder Tongue Laboratories, Inc. is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Bob Pallé deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. Shareholders may want to check for free if Blonder Tongue Laboratories insiders are buying or selling shares.
Important note: Blonder Tongue Laboratories 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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