Yahoo Finance Blackline Safety Corp.'s (CVE:BLN) CEO Looks Due For A Compensation Raise
The solid performance at Blackline Safety Corp. (CVE:BLN) has been impressive and shareholders will probably be pleased to know that CEO Cody Slater has delivered. This would be kept in mind at the upcoming AGM on 30 March 2021 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
View our latest analysis for Blackline Safety
How Does Total Compensation For Cody Slater Compare With Other Companies In The Industry?
Our data indicates that Blackline Safety Corp. has a market capitalization of CA$462m, and total annual CEO compensation was reported as CA$267k for the year to October 2020. That's a modest increase of 6.4% on the prior year. Notably, the salary which is CA$185.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations ranging from CA$251m to CA$1.0b, the reported median CEO total compensation was CA$1.4m. In other words, Blackline Safety pays its CEO lower than the industry median. Furthermore, Cody Slater directly owns CA$12m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$185k | CA$154k | 69% |
Other | CA$82k | CA$97k | 31% |
Total Compensation | CA$267k | CA$251k | 100% |
Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. Blackline Safety pays out 69% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Blackline Safety Corp.'s Growth
Blackline Safety Corp. has seen its earnings per share (EPS) increase by 12% a year over the past three years. It achieved revenue growth of 15% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Blackline Safety Corp. Been A Good Investment?
Boasting a total shareholder return of 48% over three years, Blackline Safety Corp. has done well by shareholders. 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...
Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 3 warning signs for Blackline Safety (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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