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How Should Investors React To Briscoe Group Limited's (NZSE:BGP) CEO Pay?

Rod Duke became the CEO of Briscoe Group Limited (NZSE:BGP) in 1991. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Briscoe Group

How Does Rod Duke's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Briscoe Group Limited has a market cap of NZ$995m, and reported total annual CEO compensation of NZ$978k for the year to January 2019. We think total compensation is more important but we note that the CEO salary is lower, at NZ$721k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of NZ$606m to NZ$2.4b. The median total CEO compensation was NZ$1.0m.

So Rod Duke receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Briscoe Group has changed from year to year.

NZSE:BGP CEO Compensation, January 26th 2020
NZSE:BGP CEO Compensation, January 26th 2020

Is Briscoe Group Limited Growing?

On average over the last three years, Briscoe Group Limited has grown earnings per share (EPS) by 3.4% each year (using a line of best fit). In the last year, its revenue is up 4.0%.

I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.

Has Briscoe Group Limited Been A Good Investment?

Most shareholders would probably be pleased with Briscoe Group Limited for providing a total return of 34% over three years. 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.

In Summary...

Remuneration for Rod Duke is close enough to the median pay for a CEO of a similar sized company .

The company isn't showing particularly great growth, but shareholder returns have been pleasing. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. Shareholders may want to check for free if Briscoe Group insiders are buying or selling shares.

Important note: Briscoe Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.