We think the CEO of Beam Communications Holdings Limited (ASX:BCC) may struggle to see a big pay rise this year | Wbactive

CEO Michael Capocchi did a decent job and delivered a relatively good performance Beam Communications Holdings Limited (ASX:BCC) recently. Shareholders will take this into account when they vote on company resolutions such as Management Board remuneration at the forthcoming Annual General Meeting on November 30, 2022. Here’s our take on why we think CEO pay is fair.

Try this chances and risks within the AU communications industry.

How does Michael Capocchi’s total compensation compare to other companies in the industry?

According to our data, Beam Communications Holdings Limited has a market capitalization of A$22m and paid its CEO A$579,000 in total annual compensation over the year to June 2022. That’s notably a 15% decrease from last year. We find that the salary component, which amounts to A$432.5k, accounts for the majority of the CEO’s total compensation.

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%

In terms of industry, salary made up about 48% of total compensation across all the companies we analyzed, while other compensation made up 52% ​​of the pie. It’s interesting to note that Beam Communications Holdings pays a larger portion of compensation through salary compared to the industry. When total compensation drifts towards salary, this indicates that the variable component – which is usually tied to performance – is less.

ASX:BCC CEO Compensation November 23, 2022

The Growth of Beam Communications Holdings Limited

Beam Communications Holdings Limited has posted a 34% annual increase in earnings per share (EPS) over the last three years. It achieved 28% revenue growth last year.

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?

With a total return to shareholders of 2.0% over three years, Beam Communications Holdings Limited has done well with shareholders, but there is always room for improvement. As a result, the company’s investors may hesitate to agree to a future increase in CEO salaries before they see an improvement in their returns.

Conclude…

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. That being said, any proposed CEO pay increase will still be judged on how appropriate it is based on performance and industry benchmarks.

While CEO pay is an important factor to consider, there are other areas investors should also consider. So we did some digging and identified 3 warning signs for Beam Communications Holdings that investors should think about before investing in this stock.

Company quality is arguably far more important than CEO pay levels. So check this out free List of interesting companies with HIGH return on equity and low debt.

The assessment is complex, but we help to simplify it.

find out if Beam Communications holdings may be over or under priced by reviewing our comprehensive analysis which includes the following Fair Value Estimates, Risks and Warnings, Dividends, Insider Trading and Financial Health.

Check out the free analysis

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.

Leave a Comment