Yahoo Finance Shareholders Would Not Be Objecting To BATM Advanced Communications Ltd.'s (LON:BVC) CEO Compensation And Here's Why
It would be hard to discount the role that CEO Zvi Marom has played in delivering the impressive results at BATM Advanced Communications Ltd. (LON:BVC) recently. Coming up to the next AGM on 14 December 2021, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.
Check out our latest analysis for BATM Advanced Communications
Comparing BATM Advanced Communications Ltd.'s CEO Compensation With the industry
Our data indicates that BATM Advanced Communications Ltd. has a market capitalization of UK£352m, and total annual CEO compensation was reported as US$957k for the year to December 2020. That's a notable increase of 47% on last year. In particular, the salary of US$547.0k, makes up a fairly large portion of the total compensation being paid to the CEO.
On comparing similar companies from the same industry with market caps ranging from UK£151m to UK£605m, we found that the median CEO total compensation was US$830k. This suggests that BATM Advanced Communications remunerates its CEO largely in line with the industry average. Furthermore, Zvi Marom directly owns UK£77m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$547k | US$503k | 57% |
Other | US$410k | US$150k | 43% |
Total Compensation | US$957k | US$653k | 100% |
Talking in terms of the industry, salary represented approximately 80% of total compensation out of all the companies we analyzed, while other remuneration made up 20% of the pie. BATM Advanced Communications sets aside a smaller share of compensation for salary, in comparison to the overall 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.
A Look at BATM Advanced Communications Ltd.'s Growth Numbers
BATM Advanced Communications Ltd.'s earnings per share (EPS) grew 134% per year over the last three years. Its revenue is up 23% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has BATM Advanced Communications Ltd. Been A Good Investment?
Boasting a total shareholder return of 74% over three years, BATM Advanced Communications Ltd. has done well by shareholders. 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.
To Conclude...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for BATM Advanced Communications that investors should be aware of in a dynamic business environment.
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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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.
