Andrew Walwyn has been the CEO of Bigblu Broadband plc (LON:BBB) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for Bigblu Broadband
How Does Total Compensation For Andrew Walwyn Compare With Other Companies In The Industry?
According to our data, Bigblu Broadband plc has a market capitalization of UK£56m, and paid its CEO total annual compensation worth UK£317k over the year to November 2019. We note that's a small decrease of 6.8% on last year. We note that the salary portion, which stands at UK£244.0k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below UK£152m, we found that the median total CEO compensation was UK£270k. From this we gather that Andrew Walwyn is paid around the median for CEOs in the industry. Moreover, Andrew Walwyn also holds UK£2.9m worth of Bigblu Broadband stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Talking in terms of the industry, salary represented approximately 46% of total compensation out of all the companies we analyzed, while other remuneration made up 54% of the pie. According to our research, Bigblu Broadband has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Bigblu Broadband plc's Growth Numbers
Over the past three years, Bigblu Broadband plc has seen its earnings per share (EPS) grow by 14% per year. It achieved revenue growth of 12% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Bigblu Broadband plc Been A Good Investment?
Since shareholders would have lost about 11% over three years, some Bigblu Broadband plc investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we noted earlier, Bigblu Broadband pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But earnings growth is moving in a favorable direction, certainly a positive sign. It's tough for us to say CEO compensation is too generous when earnings growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Bigblu Broadband that investors should look into moving forward.
Switching gears from Bigblu Broadband, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
This article by Simply Wall St is general in nature. 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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