In This Article:
Michael Capocchi became the CEO of Beam Communications Holdings Limited (ASX:BCC) in 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Beam Communications Holdings
How Does Michael Capocchi’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Beam Communications Holdings Limited has a market cap of AU$9.0m, and is paying total annual CEO compensation of AU$603k. (This figure is for the year to June 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$477k. We examined a group of similar sized companies, with market capitalizations of below AU$282m. The median CEO total compensation in that group is AU$354k.
It would therefore appear that Beam Communications Holdings Limited pays Michael Capocchi more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Beam Communications Holdings has changed from year to year.
Is Beam Communications Holdings Limited Growing?
Over the last three years Beam Communications Holdings Limited has shrunk its earnings per share by an average of 107% per year (measured with a line of best fit). Its revenue is up 67% over last year.
The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Beam Communications Holdings Limited Been A Good Investment?
With a three year total loss of 35%, Beam Communications Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We compared total CEO remuneration at Beam Communications Holdings Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.