Yahoo Finance Shareholders May Not Be So Generous With Blackline Safety Corp.'s (TSE:BLN) CEO Compensation And Here's Why
Key Insights
Blackline Safety will host its Annual General Meeting on 21st of March
Total pay for CEO Cody Slater includes CA$309.3k salary
The total compensation is similar to the average for the industry
Over the past three years, Blackline Safety's EPS fell by 63% and over the past three years, the total loss to shareholders 45%
The underwhelming share price performance of Blackline Safety Corp. (TSE:BLN) in the past three years would have disappointed many shareholders. Per share earnings growth is also lacking, despite revenue growth. Shareholders will have a chance to take their concerns to the board at the next AGM on 21st of March and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's why we think shareholders should hold off on a raise for the CEO at the moment.
Check out our latest analysis for Blackline Safety
Comparing Blackline Safety Corp.'s CEO Compensation With The Industry
At the time of writing, our data shows that Blackline Safety Corp. has a market capitalization of CA$155m, and reported total annual CEO compensation of CA$388k for the year to October 2022. We note that's an increase of 10% above last year. Notably, the salary which is CA$309.3k, represents most of the total compensation being paid.
In comparison with other companies in the Canadian Commercial Services industry with market capitalizations under CA$273m, the reported median total CEO compensation was CA$423k. This suggests that Blackline Safety remunerates its CEO largely in line with the industry average. Moreover, Cody Slater also holds CA$3.8m worth of Blackline Safety stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | CA$309k | CA$238k | 80% |
Other | CA$78k | CA$113k | 20% |
Total Compensation | CA$388k | CA$351k | 100% |
On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. According to our research, Blackline Safety has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Blackline Safety Corp.'s Growth
Over the last three years, Blackline Safety Corp. has shrunk its earnings per share by 63% per year. Its revenue is up 34% over the last year.
The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Blackline Safety Corp. Been A Good Investment?
The return of -45% over three years would not have pleased Blackline Safety Corp. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 1 which is potentially serious) in Blackline Safety we think you should know about.
Important note: Blackline Safety is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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