That’s why shareholders are holding back on a pay rise for the CEO of Beam Communications Holdings Limited (ASX:BCC) this year | Wbactive

performance at Beam Communications Holdings Limited (ASX:BCC) has been pretty good and CEO Michael Capocchi has done a good job of steering the company in the right direction. Given that performance, CEO pay likely won’t be the primary focus of shareholders heading into the November 30, 2022 AGM. We present our case for why we think CEO pay seems fair.

Check out our latest analysis for Beam Communications Holdings

How Beam Communications Holdings Limited CEO compensation compares to the industry

According to our data, Beam Communications Holdings Limited has a market capitalization of A$22 million and paid its CEO A$579,000 in total annual compensation over the year to June 2022. We note that this represents a 15% decrease compared to last year. In particular, the salary of A$432.5,000 accounts for the majority of the total compensation paid.

Comparing similarly sized companies in the industry with a market capitalization below A$302 million, we found that the average total CEO compensation was A$499,000. So it looks like Beam Communications Holdings is compensating Michael Capocchi in line with the industry median. In addition, Michael Capocchi directly owns shares in the company valued at A$773,000.

component

2022

2021

Share (2022)

salary

$433,000

$441,000

75%

Miscellaneous

$147,000

$237,000

25%

Total Compensation

$579,000

$679,000

100%

At industry level, around 48% of total compensation is salary and 52% other compensation. Beam Communications Holdings pays out 75% of compensation in the form of a salary, which is well above the industry average. If salary is the major component of total compensation, this indicates that the CEO receives a higher fixed portion of total compensation regardless of performance.

CEO Compensation

A look at Beam Communications Holdings Limited growth numbers

Beam Communications Holdings Limited’s earnings per share (EPS) have grown 34% annually over the past three years. Last year sales increased by 28%.

This shows that the company has improved recently and is good news for shareholders. It’s great to see that revenue growth is strong too. These metrics suggest the business is growing strongly. Looking ahead, check out this free visual report Analyst forecasts for the future earnings of the company.

Was Beam Communications Holdings Limited a good investment?

Beam Communications Holdings Limited has delivered a total shareholder return of 2.0% over three years, so most shareholders wouldn’t be too disappointed. Although there is always room for improvement. Accordingly, a proposal to increase CEO compensation without seeing an improvement in shareholder returns may not be well received by most shareholders.

In summary…

The company’s decent performance could have kept most shareholders happy, making CEO pay possibly one of the least concerns to discuss at the upcoming AGM. Despite the encouraging results, we remain confident that any proposed CEO pay increases will be considered on a case-by-case basis and linked to performance outcomes.

While it’s important to pay attention to CEO compensation, investors should also consider other elements of the business. So we did some digging and identified 3 warning signs for Beam Communications Holdings that investors should think about before investing in this stock.

sure, You might find a fantastic investment by looking at another group of stocks. So check this out free List of interesting companies.

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This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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