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The results at Beasley Broadcast Group, Inc. (NASDAQ:BBGI) have been quite disappointing recently and CEO Barbara Beasley bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 27 May 2021. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.
Comparing Beasley Broadcast Group, Inc.'s CEO Compensation With the industry
Our data indicates that Beasley Broadcast Group, Inc. has a market capitalization of US$79m, and total annual CEO compensation was reported as US$2.0m for the year to December 2020. That's a notable increase of 13% on last year. We note that the salary of US$1.10m makes up a sizeable portion of the total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$690k. Hence, we can conclude that Barbara Beasley is remunerated higher than the industry median. Furthermore, Barbara Beasley directly owns US$3.6m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. It's interesting to note that Beasley Broadcast Group pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Beasley Broadcast Group, Inc.'s Growth
Over the last three years, Beasley Broadcast Group, Inc. has shrunk its earnings per share by 120% per year. In the last year, its revenue is down 25%.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Beasley Broadcast Group, Inc. Been A Good Investment?
Few Beasley Broadcast Group, Inc. shareholders would feel satisfied with the return of -71% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Beasley Broadcast Group (1 doesn't sit too well with us!) that you should be aware of before investing here.
Switching gears from Beasley Broadcast Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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